Press release
Insmed Announces Pricing of Concurrent Public Offerings of Common Stock and Convertible Senior Notes due 2028
BRIDGEWATER, N.J., May 11, 2021 /PRNewswire/ -- Insmed Incorporated (Nasdaq: INSM) announced today that it priced a registered underwritten public offering of
About this update from Insmed Incorporated
[{"type":"text","content":"BRIDGEWATER, N.J., May 11, 2021 /PRNewswire/ -- Insmed Incorporated (Nasdaq: INSM) announced today that it priced a registered underwritten public offering of 10,000,000 shares of its common stock (the \"Shares\") at a price to the public of $25.00 per share before deducting underwriting discounts and commissions, and a registered underwritten public offering of $500 million aggregate principal amount of its 0.75% convertible senior notes due 2028 (the \"Notes\"). A portion of the net proceeds from the offering of the Notes will be used to repurchase $225 million in aggregate principal amount of Insmed's existing outstanding 1.75% Convertible Senior Notes due 2025 (the \"2025 Notes\"). The gross proceeds to Insmed from the offerings, before deducting underwriting discounts and commissions and other offering expenses payable by Insmed, are expected to be $250 million and $500 million, respectively. In addition, Insmed has granted the underwriters of the offering of Shares (the \"Equity Offering\") a 30-day option to purchase up to an additional 1,500,000 Shares and to the underwriters of the offering of the Notes (the \"Notes Offering\") a 30-day option, solely to cover over-allotments, to purchase up to an additional $75 million in aggregate principal amount of the Notes. All of the Shares and Notes to be sold in the offerings are to be sold by Insmed.\nThe offerings are expected to close on or about May 13, 2021, subject to satisfaction of customary closing conditions. The closing of each offering is not contingent on the closing of the other offering.\nThe Notes will be senior unsecured obligations of Insmed and will rank senior in right of payment to any of Insmed's future indebtedness that is expressly subordinated in right of payment to the Notes and will rank equally in right of payment with all of Insmed's existing and future liabilities that are not so subordinated, including the existing 2025 Notes. The Notes will accrue interest payable semiannually in arrears on June 1 and December 1 of each year at the rate of 0.75% per year, beginning on December 1, 2021. The Notes will mature on June 1, 2028, unless earlier repurchased, redeemed or converted in accordance with their terms prior to such date. Prior to June 6, 2025, Insmed will not have the right to redeem the Notes. Subject to certain conditions, on or after June 6,...