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Ironwood sells $390mm net amount of senior notes in upsized private offering

Executive Summary

Ironwood Pharmaceuticals Inc. (developing treatments for gastrointestinal diseases including IBS) netted $390mm through an upsized private sale of $400mm aggregate amount (including the overallotment) of its senior convertible notes. Institutional investors purchased $200mm aggregate principal amount of 0.75% notes due June 15, 2024, and $200mm aggregate principal amount of 1.50% notes due June 15, 2026. Both sets of notes convert to common at a rate of 74.6887 shares per $1k principal amount, or approximately $13.39 per share. (Ironwood's stock averaged $10.40 at the time of the sale). Proceeds will allow the company to redeem all of its outstanding 8.375% notes due 2026; repurchase about $215mm aggregate principal amount of its outstanding 2.25% convertible notes due 2022; pay the cost of concurrent capped call transactions; and fund general corporate purposes.
Deal Industry
  • Biotechnology
  • Pharmaceuticals
Deal Status
  • Final
Deal Type
  • Financing
    • Convertible Debt
    • Private Placement

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