Impax Plans $500 Mln. Notes Offering

(RTTNews) - Specialty pharmaceuticals company Impax Laboratories Inc (IPXL) on Wednesday said it plans to offer $500 million aggregate principal amount of convertible senior notes due 2022 in a private offering to qualified institutional buyers.

In connection with the offering, the company expects to grant the initial purchasers an option to purchase up to an additional $100 million aggregate principal amount of such notes.

The notes will be convertible into cash, shares of the company's common stock or a combination of both, subject to certain conditions, Impax said.

Impax said it expects to use about $435 million of the net proceeds from the notes offering to repay all of the outstanding indebtedness under its credit facility and also to pay the cost of the convertible note hedge transaction. The company expects to use the remaining proceeds for other general purposes.

RBC Capital Markets LLC is acting as sole structuring advisor and sole bookrunner for the proposed offering.