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ANI Pharmaceuticals, Inc. Closes $316.25 Million Convertible Senior Notes Offering Including Full Exercise of Initial Purchasers’ Option to Purchase Additional Notes

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ANI Pharmaceuticals has successfully closed its offering of $316.25 million in 2.25% convertible senior notes due 2029. The offering, initially set at $250 million, was upsized to $275 million with an additional $41.25 million exercised by initial purchasers. Net proceeds are approximately $306.8 million. ANI plans to use $40.6 million for capped call transactions and the remainder to repay its existing senior secured term loan facility. The company also entered a new senior secured credit agreement with a $325 million delayed draw term loan facility and a $75 million revolving facility. The capped call transactions are expected to reduce potential dilution and offset potential cash payments upon note conversion.

ANI Pharmaceuticals ha chiuso con successo la sua offerta di 316,25 milioni di dollari in note senior convertibili del 2,25% con scadenza nel 2029. L'offerta, inizialmente fissata a 250 milioni di dollari, è stata aumentata a 275 milioni di dollari con ulteriori 41,25 milioni di dollari esercitati dagli acquirenti iniziali. I proventi netti ammontano a circa 306,8 milioni di dollari. ANI prevede di utilizzare 40,6 milioni di dollari per transazioni di capped call e il resto per rimborsare il suo attuale prestito senior garantito a termine. L'azienda ha anche stipulato un nuovo contratto di credito senior garantito con una struttura di prestito a termine con rimborso posticipato di 325 milioni di dollari e una linea di credito rotativa di 75 milioni di dollari. Le transazioni di capped call sono destinate a ridurre la potenziale diluizione e a compensare i potenziali pagamenti in contante in caso di conversione delle note.

ANI Pharmaceuticals ha cerrado con éxito su oferta de 316.25 millones de dólares en notas senior convertibles al 2.25% con vencimiento en 2029. La oferta, inicialmente establecida en 250 millones de dólares, se amplió a 275 millones de dólares con un adicional de 41.25 millones de dólares ejercidos por los compradores iniciales. Los ingresos netos son aproximadamente 306.8 millones de dólares. ANI planea utilizar 40.6 millones de dólares para transacciones de capped call y el resto para pagar su préstamo garantizado senior existente. La compañía también firmó un nuevo acuerdo de crédito senior garantizado con una instalación de préstamo a término de 325 millones de dólares con desembolso diferido y una línea de crédito rotativa de 75 millones de dólares. Se espera que las transacciones de capped call reduzcan la posible dilución y compensen los posibles pagos en efectivo al momento de la conversión de notas.

ANI 제약은 2029년 만기 2.25% 전환 선순위 채권 3억 1,625만 달러의 공모를 성공적으로 마감했습니다. 이 공모는 처음에 2억 5천만 달러로 설정되었으나, 초기 구매자에 의해 추가로 4,125만 달러가 증가하여 총 2억 7,500만 달러로 확장되었습니다. 순수익은 약 3억 6,680만 달러입니다. ANI는 4,060만 달러를 캡 콜 거래에 사용하고 나머지는 기존의 선순위 담보 대출을 상환할 계획입니다. 또한, 이 회사는 3억 2,500만 달러의 지연 인출 가능 대출 시설과 7,500만 달러의 회전 신용 시설을 포함한 새로운 선순위 담보 신용 계약을 체결했습니다. 캡 콜 거래는 잠재적 희석을 줄이고 노트 전환 시 현금 지급에 대한 잠재적 상쇄를 기대하고 있습니다.

ANI Pharmaceuticals a réussi à clôturer son offre de 316,25 millions de dollars en obligations senior convertibles à 2,25 % arrivant à échéance en 2029. L'offre, initialement fixée à 250 millions de dollars, a été augmentée à 275 millions de dollars avec un supplément de 41,25 millions de dollars exercé par les acheteurs initiaux. Les produits nets s'élèvent à environ 306,8 millions de dollars. ANI prévoit d'utiliser 40,6 millions de dollars pour des transactions de capped call et le reste pour rembourser son prêt senior garanti existant. La société a également conclu un nouvel accord de crédit senior garanti avec une facilité de prêt à terme différé de 325 millions de dollars et une facilité de crédit renouvelable de 75 millions de dollars. Les transactions de capped call devraient réduire la dilution potentielle et compenser les paiements en espèces potentiels lors de la conversion des obligations.

ANI Pharmaceuticals hat erfolgreich die Emission von 316,25 Millionen US-Dollar in 2,25% wandelbaren vorrangigen Anleihen mit Fälligkeit 2029 abgeschlossen. Die ursprünglich auf 250 Millionen US-Dollar festgelegte Emission wurde auf 275 Millionen US-Dollar erhöht, wobei zusätzliche 41,25 Millionen US-Dollar von den ursprünglichen Käufern ausgeübt wurden. Der Nettoerlös beträgt etwa 306,8 Millionen US-Dollar. ANI plant, 40,6 Millionen US-Dollar für capped call Transaktionen zu verwenden und den Rest zur Rückzahlung des bestehenden vorrangig abgesicherten Terminkredits zu nutzen. Das Unternehmen hat auch einen neuen vorrangigen Kreditvertrag mit einer 325 Millionen US-Dollar großen verzögerten Abrufkreditsumme und eine 75 Millionen US-Dollar revolvierende Kreditlinie abgeschlossen. Die capped call Transaktionen sollen die potenzielle Verwässerung reduzieren und potenzielle Barauszahlungen bei der Umwandlung von Anleihen ausgleichen.

Positive
  • Successfully raised $316.25 million through convertible senior notes offering
  • Upsized offering from $250 million to $275 million due to high investor demand
  • Net proceeds of approximately $306.8 million after discounts and commissions
  • Entered new senior secured credit agreement with $325 million delayed draw term loan and $75 million revolving facility
  • Implemented capped call transactions to potentially reduce dilution and offset cash payments upon note conversion
Negative
  • Increased debt obligation with $316.25 million in convertible senior notes
  • Potential dilution of common stock if notes are converted
  • Approximately $40.6 million of proceeds allocated to capped call transactions instead of operations or debt repayment

Insights

ANI Pharmaceuticals' successful closing of a $316.25 million convertible senior notes offering marks a significant financial move. The upsized offering and full exercise of the initial purchasers' option indicate strong investor demand. With a 2.25% interest rate and 5-year maturity, these notes provide ANI with relatively low-cost capital. The company's strategic use of $40.6 million for capped call transactions is a prudent move to mitigate potential dilution. The remaining proceeds will refinance existing debt, potentially improving ANI's capital structure. However, investors should note the potential dilution risk if ANI's stock price exceeds the $114.02 cap price. Overall, this transaction strengthens ANI's financial position, providing flexibility for future growth initiatives.

The private placement of convertible notes to qualified institutional buyers under Rule 144A exempts ANI from SEC registration requirements, streamlining the process. However, this limits the notes' liquidity and transferability. The implementation of capped call transactions is a savvy legal strategy to manage potential dilution, but it's important to monitor compliance with anti-dilution provisions. The concurrent termination of the existing credit agreement and establishment of a new $400 million facility ($325 million term loan and $75 million revolving) suggests a comprehensive refinancing strategy. Investors should be aware that while this offering provides financial flexibility, it also introduces new contractual obligations and potential conversion scenarios that could impact shareholder value.

PRINCETON, N.J., Aug. 13, 2024 (GLOBE NEWSWIRE) -- ANI Pharmaceuticals, Inc. (ANI or the Company) (Nasdaq: ANIP) today announced the closing of its offering of $316,250,000 aggregate principal amount of 2.25% convertible senior notes due 2029 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). In response to investor demand, ANI upsized the initial offering of $250,000,000 aggregate principal amount of notes to $275,000,000 and the initial purchasers fully exercised their option to purchase an additional $41,250,000 aggregate principal amount of the notes. The notes were issued pursuant to, and are governed by, an indenture, dated as of August 13, 2024, between the Company and U.S. Bank Trust Company, National Association, as trustee.

The net proceeds from the offering are approximately $306.8 million, after deducting the initial purchasers’ discounts and commissions but before deducting ANI’s estimated offering expenses. ANI intends to use approximately $40.6 million of the net proceeds to fund the cost of entering into the capped call transactions described below. ANI intends to use the remainder of the net proceeds from the offering, together with cash on hand, to repay in full ANI’s existing senior secured term loan facility. Substantially concurrently with repayment of the existing senior secured term loan facility, the commitments under the existing senior secured credit agreement (which includes the senior secured term loan facility and a revolving facility) were terminated and the Company entered into a new senior secured credit agreement consisting of a $325,000,000 delayed draw term loan facility and a $75,000,000 revolving facility.

In connection with the pricing of the notes and the exercise by the initial purchasers of their option to purchase additional notes, ANI entered into privately negotiated capped call transactions with certain financial institutions. The capped call transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the number of shares of ANI’s common stock underlying the notes.  The cap price of the capped call transactions is initially $114.02 per share, which represents a premium of 100% over the last reported sale price of ANI’s common stock of $57.01 per share on the date the notes offering was priced, and is subject to certain adjustments under the terms of the capped call transactions.  The capped call transactions are expected generally to reduce the potential dilution to ANI’s common stock upon any conversion of the notes and/or offset any potential cash payments ANI is required to make in excess of the principal amount of converted notes, as the case may be, upon conversion of the notes. If, however, the market price per share of ANI’s common stock, as measured under the terms of the capped call transactions, exceeds the cap price of the capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such potential cash payments, in each case, to the extent that such market price exceeds the cap price of the capped call transactions.

The notes were only offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The offer and sale of the notes and any shares of common stock issuable upon conversion of the notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any shares of common stock issuable upon conversion of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.

About ANI Pharmaceuticals, Inc.

ANI Pharmaceuticals, Inc. (Nasdaq: ANIP) is a diversified biopharmaceutical company serving patients in need by developing, manufacturing, and marketing high-quality branded and generic prescription pharmaceutical products, including for diseases with high unmet medical need. ANI is focused on delivering sustainable growth by scaling up its Rare Disease business through its lead asset Purified Cortrophin® Gel, strengthening its Generics business with enhanced research and development capabilities, delivering innovation in Established Brands, and leveraging its U.S. based manufacturing footprint.

Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical facts contained herein, including, without limitation, statements regarding the effects of entering into the capped call transactions described above, are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other important factors that may cause ANI’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risks and uncertainties related to market conditions and satisfaction of customary closing conditions related to the offering and risks relating to ANI’s business, including those described in periodic reports that ANI files from time to time with the SEC. ANI may not consummate the offering described in this press release and, if the offering is consummated, cannot provide any assurances regarding its ability to effectively apply the net proceeds as described above. Any risks and uncertainties could materially and adversely affect ANI’s results of operations, which would, in turn, have a significant and adverse impact on ANI’s stock price. Any forward-looking statements contained in this press release speak only as of the date hereof, and ANI specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Relations:
Lisa M. Wilson, In-Site Communications, Inc.
T: 212-452-2793
E: lwilson@insitecony.com


FAQ

What is the total amount of convertible senior notes issued by ANI Pharmaceuticals (ANIP)?

ANI Pharmaceuticals (ANIP) issued $316.25 million in aggregate principal amount of 2.25% convertible senior notes due 2029.

How much did ANI Pharmaceuticals (ANIP) receive in net proceeds from the notes offering?

ANI Pharmaceuticals (ANIP) received approximately $306.8 million in net proceeds from the convertible senior notes offering, after deducting initial purchasers' discounts and commissions.

What is the interest rate and maturity date of ANI Pharmaceuticals' (ANIP) convertible senior notes?

ANI Pharmaceuticals' (ANIP) convertible senior notes have an interest rate of 2.25% and are due in 2029.

How does ANI Pharmaceuticals (ANIP) plan to use the proceeds from the notes offering?

ANI Pharmaceuticals (ANIP) plans to use $40.6 million for capped call transactions and the remainder, along with cash on hand, to repay its existing senior secured term loan facility.

What new credit facilities did ANI Pharmaceuticals (ANIP) secure in August 2024?

In August 2024, ANI Pharmaceuticals (ANIP) entered a new senior secured credit agreement consisting of a $325 million delayed draw term loan facility and a $75 million revolving facility.

ANI Pharmaceuticals, Inc.

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