SAN RAFAEL, Calif., Oct. 9, 2013 (GLOBE NEWSWIRE) -- BioMarin Pharmaceutical Inc. (Nasdaq:BMRN) announced the pricing on October 8, 2013 of a total offering of $680 million of its senior subordinated convertible notes consisting of $340 million 0.75% Senior Subordinated Convertible Notes due 2018 (the "2018 Notes") and $340 million 1.50% Senior Subordinated Convertible Notes due 2020 (the "2020 Notes" and together with the 2018 Notes, the "Notes"). The Notes will be issued at a price equal to 100% of the principal amount thereof. BioMarin intends to use the net proceeds from the offering for general corporate purposes, including working capital and research and development. In addition, BioMarin intends to use $27.03 million of the net proceeds of the offering for the payment of the cost of the capped call transactions described below. The offering of the Notes is expected to close on October 15, 2013, subject to the satisfaction of customary closing conditions.
BioMarin has granted the underwriters options to purchase up to an additional $70 million aggregate principal amount of the Notes. The Notes will be convertible, under certain circumstances, into cash, shares of BioMarin's common stock or a combination thereof at BioMarin's election. The initial conversion rate will be 10.6213 shares of common stock per $1,000 principal amount of Notes (representing an initial conversion price of approximately $94.15 per common share), subject to customary adjustments. The initial conversion rate represents approximately a 40% premium to the last reported sale price of the common stock on the NASDAQ Global Select Market on October 8, 2013. Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2014. The 2018 Notes will mature on October 15, 2018 and the 2020 Notes will mature on October 15, 2020, in each case, unless earlier repurchased or converted in accordance with their terms. Prior to July 15, 2018, in the case of the 2018 Notes, and July 15, 2020, in the case of the 2020 Notes, the Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the applicable maturity date. BofA Merrill Lynch, Goldman, Sachs & Co., J.P. Morgan and Morgan Stanley are acting as joint book-running managers for this offering. Barclays is acting as co-manager.