Merrimack Pharma Prices Stock and Convertible Note Issues

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Merrimack Pharma has slapped a price tag on its twin-barreled public securities offerings. The company's lower-than-previously announced flotation of 5 million shares of common stock will be priced at $5.00 per share. Meanwhile, the aggregate principal amount of its convertible notes issue maturing in 2020 has been boosted to $125 million, and given an annual coupon of 4.50%, payable on a semi-annual basis. The underwriters of the issues have also been granted an option to buy an additional 750,000 shares of the stock, and $18.75 million worth of the notes.

The company said that it plans to use the proceeds of the issues to fund commercial efforts for its goods, as well as product development, research, and "general corporate purposes."

JPMorgan Chase's J.P. Morgan Securities and Bank of America unit Merrill Lynch are the joint book-running managers of the offerings, which are expected to close "on or about" July 17.


Prior to the common stock issue, Merrimack had slightly over 96 million shares outstanding. Its most recent closing stock price was $5.08 per share.

The article Merrimack Pharma Prices Stock and Convertible Note Issues originally appeared on Fool.com.

Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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