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Insmed Prices $250 Million Equity Offering, $500 Million Notes Offering

05/10/2021 23:51

03:39 AM EDT, 05/11/2021 (MT Newswires) -- Insmed (INSM) said Tuesday that it priced a public offering of 10 million common shares at $25.00 per share to raise $250 million, and a public offering of $500 million of its 0.75% convertible senior notes due 2028.

The conversion rate of the notes will initially be 30.7692 Insmed common shares per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of about $32.50 per share.

Underwriters of the equity offering have a 30-day option to buy up to an additional 1.5 million shares, while underwriters of the notes offering have a 30-day option to buy up to an additional $75 million of the notes to cover over-allotments.

The offerings are expected to close on or about May 13. The closing of each offering is not contingent on the closing of the other offering.

Insmed will use a portion of the net proceeds from the notes offering to repurchase $225 million of its existing outstanding 1.75% convertible senior notes due 2025.

The company plans to use remaining net proceeds from the notes offering and the net proceeds from the equity offering to fund activities related to the commercialization and development of ARIKAYCE, further research and development of brensocatib, TPIP or any of its product candidates, and for other general corporate purposes, including business expansion activities.

Concurrently with the offerings, Insmed will enter into separate and privately negotiated repurchase transactions with certain holders of a portion of the 2025 notes.

Price: 25.99, Change: -6.59, Percent Change: -20.23