04:22 AM EDT, 08/08/2024 (MT Newswires) -- ANI Pharmaceuticals ( ANIP ) said Wednesday that it has priced its private offering of $275 million of 2.25% convertible senior, unsecured notes due Sept. 1, 2029, upsized from $250 million.

The company also granted the initial purchasers of the notes a 13-day option to buy up to an additional about $41.3 million of notes. The issuance and sale of the notes is expected to settle on Aug. 13.

Interest on the notes will be payable semi-annually in arrears, starting March 1, 2025. The initial conversion rate is 13.4929 shares of common stock per $1,000 of notes, which represents an initial conversion price of about $74.11 per share.

The company said it plans to use about $35.3 million of the net proceeds to fund the cost of entering certain capped call transactions, and the remainder, together with cash on hand, to repay its existing senior secured term loan facility in full.

With the repayment and termination of the existing loan facility, the company plans to enter into a new senior secured credit agreement consisting of a $325 million delayed draw term loan facility and a $75 million revolving facility.