(Source: PRNewswire)
EMERYVILLE, Calif., Aug. 6 /PRNewswire-FirstCall/ -- Onyx Pharmaceuticals, Inc. (Nasdaq: ONXX) today announced that it has agreed to sell an aggregate of four million shares of its common stock at a price to the public of $30.50 per share and $200 million aggregate principal amount of its 4.00% convertible senior notes due 2016 in concurrent underwritten public offerings. Onyx has granted the underwriters 30-day options to purchase up to an additional 600,000 shares of its common stock and up to an additional $30 million aggregate principal amount of its convertible senior notes in connection with the offerings. Onyx estimates aggregate net proceeds from the concurrent offerings to be $310 million (assuming no exercise of the underwriters' options to purchase additional shares of common stock and convertible notes). All of the shares of common stock and the notes are being offered by Onyx.
Prior to May 15, 2016, the notes will be convertible into shares of Onyx's common stock only upon specified events, and, thereafter until maturity, at any time. The notes will be convertible by holders into shares of Onyx's common stock at an initial conversion rate of 25.2207 shares of common stock per $1,000 principal amount of notes (subject to adjustment in certain circumstances), which represent an initial conversion price of approximately $39.65 per share. Upon conversion, the notes may be settled by the payment of cash, shares of Onyx common stock or a combination thereof, at the option of Onyx. Onyx will have the right to redeem the notes in whole or in part at a specified redemption price on or after August 20, 2013 if the last reported sale of our common stock exceeds 130% of the conversion price then in effect for 20 or more trading days in a period of 30 consecutive trading days ending on the trading day immediately prior to the date of the redemption notice.
Goldman, Sachs & Co. is acting as the sole book-running manager for these offerings. Barclays Capital Inc., J.P. Morgan Securities Inc., and Lazard Capital Markets LLC are acting as co-managers. The common stock offering and the convertible senior note offering are being conducted as separate public offerings by means of separate prospectus supplements, and neither of these offerings is contingent upon the consummation of the other. Onyx expects to close the transactions on or about August 12, 2009, and each closing is subject to the satisfaction of customary closing conditions.
These offerings are being made pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission (the "SEC").
