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Fluidigm Closes on Sale of $201.3M of Senior Convertible Notes

Correction: The story has been updated to include the correct net proceed amount from the sale.

NEW YORK (GenomeWeb News) – Fluidigm said after the close of the market on Tuesday it has closed on the sale of about $201.3 million of senior convertible notes.

The sale was pursuant to an underwriting agreement between the South San Francisco, Calif.-based firm and Piper Jaffray. The notes are 2.75 percent senior convertible notes due in 2034.

Last week, the company announced the $207.5 million purchase of DVS Sciences and said in a document filed with the US Securities and Exchange Commission that it planned to offer up to $201.3 million in convertible notes to help fund the acquisition.

A Fluidigm spokesman said on Wednesday that the net proceeds from the sale were $194 million.

The notes that were sold will accrue interest at a rate of 2.75 percent per year, payable semiannually in arrears each Feb. 1 and Aug. 1, starting Aug. 1, 2014. They mature on Feb. 1, 2034.

The initial conversion rate is 17.8750 shares of Fluidigm's common stock per $1,000 principal amount notes, representing an initial conversion price of about $55.94 per share.

Note holders can surrender their notes for conversion at any time before the close of business on the business day immediately before the stated maturity date.

Fluidigm cannot redeem the notes before Feb. 6, 2018. On or before then but before Feb. 6, 2021, the company can redeem the notes if the closing price of its common stock is at least 130 percent of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period ending within five trading dates prior to the date that Fluidigm provides notice of redemption, it said in its SEC document.

On or after Feb. 6, 2021, the company can redeem the notes without any such condition, it added.

In early Wednesday afternoon trade on the Nasdaq, shares of Fluidigm were up around 2 percent at $45.54.