Innoviva’s $261 Million Upsized Convertible Senior Notes Offering and Concurrent Capped Call Transactions

Simpson Thacher represented Goldman Sachs & Co. LLC and Moelis & Company LLC, as initial purchasers on the deal.

Innoviva announced its offering of $261 million aggregate principal amount of 2.125% Convertible Senior Notes due 2028, which includes the partial exercise of the initial purchasers’ option to purchase additional notes. The size of the offering was upsized from $200 million to $225 million.

In addition, the Firm represented certain of the initial purchasers and/or their respective affiliates and other financial institutions in connection with the capped call transactions relating to the common stock of Innoviva, entered into concurrently with the offering of the notes. 

Innoviva used a portion of the net proceeds from the offering to fund the cost of entering into the concurrent capped call transactions. In addition, Innoviva used a portion of the remaining net proceeds to repurchase a portion of its 2.125% Convertible Subordinated Notes due 2023 and to pay fees and expenses related thereto. Innoviva intends to use the remaining proceeds from the offering for general corporate purposes.

Innoviva is a company with a portfolio of royalties that include respiratory assets partnered with Glaxo Group Limited, including RELVAR®/BREO® ELLIPTA® (fluticasone furoate/vilanterol), ANORO® ELLIPTA® (umeclidinium bromide/vilanterol) and TRELEGY® ELLIPTA®.

The Simpson Thacher team included Roxane Reardon (Picture), Lia Toback and Richie Ragusa (Capital Markets); Jonathan Lindabury, Nathan Utterback and Danielle Robinson (Derivatives); Jeanne Annarumma and Charles Pfeifer (Executive Compensation and Employee Benefits); Genevieve Dorment, Melanie Jolson and Mark Natividad (Intellectual Property); Abram Ellis and Christine Tillema (OFAC/FCPA); Vanessa Burrows and Tera Rule (Healthcare); Michael Isby (Environmental); and Michael Mann and Edward Grais (Tax).

Involved fees earner: Jeanne Annarumma – Simpson Thacher & Bartlett; Vanessa Burrows – Simpson Thacher & Bartlett; Genevieve Dorment – Simpson Thacher & Bartlett; Abram Ellis – Simpson Thacher & Bartlett; Edward Grais – Simpson Thacher & Bartlett; Michael Isby – Simpson Thacher & Bartlett; Melanie Jolson – Simpson Thacher & Bartlett; Jonathan Lindabury – Simpson Thacher & Bartlett; Michael Mann – Simpson Thacher & Bartlett; Carlino Mark Natividad – Simpson Thacher & Bartlett; Charles Pfeifer – Simpson Thacher & Bartlett; Richard Ragusa – Simpson Thacher & Bartlett; Roxane Reardon – Simpson Thacher & Bartlett; Danielle Robinson – Simpson Thacher & Bartlett; Tera Rule – Simpson Thacher & Bartlett; Christine Tillema – Simpson Thacher & Bartlett; Lia Toback – Simpson Thacher & Bartlett; Nathan Utterback – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Goldman Sachs & Co.; Moelis & Company;

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Author: Youness Semri