Incyte To Offer Up To $400 Million In Stock, Notes

WILMINGTON, Del. (AP) — Incyte Corp. announced offerings of stock and debt that could raise about $400 million based on the company's closing stock price Tuesday.

The company said it will offer up to $250 million in senior notes that are due in 2015 and can convert to stock — the conversion rate and price will be determined later. It plans to give initial buyers an option for up to $37.5 million more in notes to meet strong demand.

Incyte said proceeds could be used for purposes including retiring old debt, such as its 3.5 percent convertible senior notes and 3.5 percent convertible subordinated notes, both due in 2011.

Incyte also said it would sell 18 million shares and grant underwriters an option to buy another 2.7 million shares to cover overallotments.

At Tuesday's closing price of $8.13, those shares could generate gross proceeds of $168.3 million, before commissions, discounts and other expenses of the offering. The company said it will use the net proceeds for general purposes including research and development.

Goldman, Sachs & Co. is the book-running manager, with Morgan Stanley and J.P. Morgan Securities as co-managers.

Wilmington, Del.-based Incyte develops drugs for treating cancer and diabetes. The company currently has about 97.8 million shares outstanding. The offerings' potential dilution for current shareholders sent Incyte shares tumbling 93 cents, or 11.4 percent, to $7.20 in extended trading.