Convertible notes offering nets $105.7mm for Pacira

Drug delivery company Pacira Pharmaceuticals Inc. has netted $105.7mm by selling to institutional investors 3.25% six-year senior notes that convert into cash up to the principal amount; anything in excess will be exchanged for Pacira stock, or a combination of cash and stock at the company’s discretion. The conversion rate is 40.2945 common shares per $1k principal amount of notes, equivalent to $24.82 per share. (Pacira stock is currently averaging $18.14.) Interest is payable semiannually in arrears. Pacira will spend the majority of the proceeds (approximately $76mm) on commercializing its post-surgical anesthetic Exparel (bupivacaine), and developing the drug in new indications such as nerve block administration. The company will use the remainder of the money to pay back existing debt.