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Illumina Prices Senior Notes Offering

NEW YORK (GenomeWeb) – Illumina today priced its $650 million convertible senior notes offering.

The 0.0 percent notes, which are being offered to qualified institutional buyers, mature Aug. 15, 2023 and will not bear any interest. The initial conversion rate of the notes is 2.1845 shares of common stock per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $457.77 per share of Illumina's common stock. The price represents a roughly 40 percent premium to the last reported sale price Thursday of Illumina’s common stock of $326.98.

As reported yesterday when the notes offering was announced, Illumina also intends to grant the initial purchasers of the notes a 30-day option to purchase up to an addition $100 million of the notes for a potential offering size of $750 million. 

The sequencing technologies firm intends to use the proceeds to repurchase approximately $102.7 million of its common stock in privately negotiated transactions at a price per share of $326.98. It expects to use the remainder of the net proceeds for general corporate purposes, which may include the repayment of its 0.0 percent convertible senior notes due 2019. 

In Friday morning trade on the Nasdaq, shares of Illumina were up a fraction of 1 percent at $327.79.