Indivior Pharmaceuticals, Inc. (NASDAQ: INDV) has announced its plan to offer $400,000,000 aggregate principal amount of convertible senior notes due 2031 in a private offering to qualified institutional buyers. The company also expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $60,000,000 principal amount of notes.
The notes will be senior, unsecured obligations of Indivior, will accrue interest payable semi-annually in arrears, and will mature on March 15, 2031, unless earlier repurchased, redeemed, or converted. Noteholders will have the right to convert their notes in certain circumstances and during specified periods.
Indivior intends to use approximately $239 million of the net proceeds from the offering, together with approximately $102 million of cash on hand, to repay borrowings under and terminate the note purchase agreement that governs its term loan and revolving credit facility. Additionally, the company plans to use up to approximately $75 million of the net proceeds from the offering to repurchase shares of its common stock from certain purchasers of the notes concurrently with the pricing of the offering in privately negotiated transactions.
The final terms of the notes, including the interest rate, initial conversion rate, and certain other terms, will be determined at the pricing of the offering.
It's notable that the offer and sale of the notes and any shares of common stock issuable upon conversion of the notes have not been registered under the securities act or any other securities laws.
Indivior is a leader in long-acting injectable treatments for opioid use disorder (OUD), and the company is singularly focused on delivering evidence-based treatment and advancing the understanding of OUD as a chronic but treatable brain disease. The market has reacted to these announcements by moving the company's shares -1.05% to a price of $32.54. For the full picture, make sure to review Indivior Pharmaceuticals's 8-K report.
