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Qiagen Plans Non-US Offering of Convertible Notes to Raise up to $300M

NEW YORK (GenomeWeb News) – Qiagen today announced plans to issue convertible notes in a private placement to raise up to $300 million in net proceeds.

The company also plans to buy back convertible notes due in 2026.

Qiagen said that it plans to repurchase up to the full $300 million of its outstanding 2026 convertible notes from non-US holders. It will use cash for the purchase, which will be priced based partly on today's variations in Qiagen's stock price.

Qiagen also intends to issue new senior unsecured cash-settled convertible notes for up to $730 million. The proceeds will be used to finance the repurchase of the 2026 convertible notes and to raise up to $300 million, which will go toward general corporate purposes.

The transactions are "designed to strengthen Qiagen's balance sheet, secure long-term financing at low interest rates, and neutralize potential dilution associated with the 2026 notes," the firm said.

The new notes will be issued in minimum denominations of $200,000 in a private placement to institutional investors outside the US, Canada, Australia, and Japan. The notes will be offered in two tranches. The first tranche will have a maturity of five years, and the second tranche will have a maturity of seven years.

The notes due in 2019 will bear interest at an annual rate of 0 percent to .75 percent, while the notes due in 2021 will bear interest at an annual rate of .5 percent to 1.25 percent. They will be payable semi-annually in arrears.

In connection with the new offering, Qiagen plans to enter into privately negotiated convertible note hedge and warrant transactions, it said.

The final size of the notes offering will be determined today and is subject to the amount of 2026 notes repurchased and other factors.

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