TAMPA - Pacira BioSciences, Inc. (NASDAQ:PCRX), a pharmaceutical company focused on non-opioid pain management solutions, announced today its intention to offer $250 million in convertible senior notes due 2029 to qualified institutional buyers. The private placement is subject to market conditions and other factors.
The company also plans to give the initial purchasers an option to buy up to an additional $37.5 million in notes within 13 days of issuance. The interest rate, initial conversion rate, and other terms of the notes will be set through negotiations with the initial purchasers.
Pacira aims to repurchase a portion of its 0.750% Convertible Senior Notes due 2025 and up to $50 million of its common stock, alongside funding the cost of entering into capped call transactions. These transactions are designed to reduce potential stock dilution upon note conversion or to offset potential cash payments above the principal amount upon conversion, subject to a cap.
The company intends to use the remainder of the net proceeds for general corporate purposes, which include working capital and research and development expenditures. If the option to purchase additional notes is exercised, Pacira will use part of the proceeds to pay for entering into additional capped call transactions.
In connection with the notes' pricing, Pacira expects to engage in capped call transactions with the initial purchasers or their affiliates, which may involve derivative transactions and stock purchases that could affect the trading price of Pacira's common stock and the initial conversion price of the notes.
The offering and sale of the notes and any shares of common stock issuable upon conversion have not been registered under the Securities Act of 1933 or any state securities laws. They may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.
InvestingPro Insights
As Pacira BioSciences, Inc. (NASDAQ:PCRX) navigates the issuance of convertible senior notes, a deeper look at the company's financial health and market performance via InvestingPro data and tips can provide investors with a clearer picture of its potential.
InvestingPro Data highlights that Pacira has a market capitalization of $1.38 billion, which is substantial for a specialty pharmaceutical company. The P/E ratio stands at 19.84, suggesting a moderate valuation relative to earnings. However, when adjusted for the last twelve months as of Q4 2023, the P/E ratio increases slightly to 22.96. The company's revenue for the same period is reported at $674.98 million with a gross profit margin of 61.34%, indicating strong profitability in its operations.
InvestingPro Tips reveal that Pacira is expected to see net income growth this year, which could be an encouraging sign for potential investors considering the convertible notes offering. Additionally, the company's stock is said to trade with low price volatility, which might appeal to investors seeking stability. Notably, analysts have predicted that the company will be profitable this year, reinforcing the positive outlook.
These financial metrics and expert insights can be instrumental for investors in determining the attractiveness of Pacira's convertible senior notes. For those interested in further analysis and additional insights, there are 9 more InvestingPro Tips available at https://www.investing.com/pro/PCRX. To enhance your investing toolkit, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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