Emergent BioSolutions Inc. announced today the closing of its previously announced offering of 2.875% Convertible Senior Notes due 2021 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. Emergent issued $250 million aggregate principal amount of its notes, which includes the additional $35 million principal amount of notes purchased by the initial purchasers under the exercise of the option granted to them by the company.
Emergent intends to use a majority of the net proceeds from the offering to finance the acquisition of Cangene Corporation, announced in December 2013. The company intends to use any remaining net proceeds from the offering for general corporate purposes, which may include repaying outstanding indebtedness under its existing credit facility.