Research Desk Line-up: Kite Pharma Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 21, 2017 /Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Jazz Pharmaceuticals PLC (NASDAQ: JAZZ), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=JAZZ. The Company announced on August 18, 2017, that Jazz Investments I Ltd, its wholly owned subsidiary, has offered 1.50% exchangeable senior notes due 2024 for an aggregate principal amount of $500 million. Jazz Investments I Ltd offered the notes in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. For immediate access to our complimentary reports, including today's coverage, register for free now at:
Discover more of our free reports coverage from other companies within the Biotechnology industry. Pro-TD has currently selected Kite Pharma, Inc. (NASDAQ: KITE) for due-diligence and potential coverage as the Company reported on August 08, 2017, its financial results for Q2 2017 and also provided a corporate update for the period which ended on June 30, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Kite Pharma when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on JAZZ; also brushing on KITE. Go directly to your stock of interest and access today's free coverage at:
Details About the Offer
- The Issuer has provided a 13-day option to purchase up to an additional $75 million aggregate principal amount of notes to the initial purchasers of the notes.
- It is anticipated that the sale of notes will close on August 23, 2017, subject to certain customary closing conditions.
- An important point to note is that Jazz Pharmaceuticals will fully and unconditionally guarantee the issuer's obligations under the notes on a senior unsecured basis. In fact, it will rank pari passu in right of payment with the Issuer's existing 1.875% exchangeable senior notes due 2021.
Proceeds to Be Used to Repay Outstanding Borrowings
- Jazz Pharmaceuticals plans to utilize the net proceeds from this offering to fully or partially repay its outstanding borrowings of $500 million under its revolving credit facility.
- Remaining proceeds, if any, will be used for the usual corporate purposes, such as business development activities.
Interest Payments and Maturity
- The interest on these notes will be payable semi-annually in cash in arrears on February 15 and August 15 each year at a rate of 1.50% per year. The interest payments would commence on February 15, 2018.
- The notes will mature on August 15, 2024, unless they are exchanged, repurchased, or redeemed on an earlier date.
Terms and Conditions for Exchange
- Before May 15, 2024, the notes will be exchangeable only after the fulfillment of certain conditions and during certain periods. Post that, they will be exchangeable at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.
- The notes will be exchangeable for cash, ordinary shares of Jazz Pharmaceuticals, or a combination of cash and ordinary shares, as per the Issuer's choice.
- The initial exchange rate has been decided at 4.5659 ordinary shares per $1,000 principal amount of notes (equivalent to an initial exchange price of $219.02 per ordinary share, which is around 50% premium over the closing price per ordinary share of $146.01 as on August 17, 2017). This price is, however, subject to adjustment in some events but not for any accrued and unpaid interest.
- None of the notes, the guarantee, or the ordinary shares issuable upon exchange of the notes, if any, has been registered under the Securities Act or the securities laws of any other jurisdiction. In fact, these securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Conditions for Redemption
- The Issuer could redeem the notes on or after August 20, 2021, in whole or in part, upon satisfaction of certain conditions. The redemption can be done at any time prior to maturity once all tax-related conditions are satisfied.
- However, the holders of the notes will have the right to demand the issuer to repurchase all or a portion of their notes for cash in the event Jazz Pharmaceuticals undergoes certain fundamental changes.
- Moreover, in case some make-whole fundamental changes occur prior to the maturity date of the notes or upon the Issuer's issuance of a notice of redemption, the Issuer will have to increase the exchange rate for holders of the notes who choose to exchange their notes due to that make-whole fundamental change, or during the related redemption period.
Last Close Stock Review
On Friday, August 18, 2017, the stock closed the trading session at $144.40, dropping 1.10% from its previous closing price of $146.01. A total volume of 1.60 million shares have exchanged hands, which was higher than the 3-month average volume of 457.75 thousand shares. Jazz Pharma's stock price advanced 5.26% in the past six months and 5.92% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 32.44%. The stock is trading at a PE ratio of 21.99 and currently has a market cap of $8.77 billion.
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