Opko Health sells $170.3mm in 20-year convertible debt

After initially intending to raise $150mm, Opko Health Inc. (small molecules, vaccines, and point-of-care and molecular diagnostics) has netted $170.3mm by selling 20-year 3% senior unsecured notes to qualified institutional and accredited investors including Frost Gamma Investments Trust (affiliated with Opko’s chairman and CEO Philip Frost, MD) and Hsu Gamma Investment (associated with the company’s vice chairman and CTO Jane Hsiao). The notes, which pay interest semi-annually in arrears, may be converted into cash, Opko common stock, or a combination on or after November 1, 2032, unless certain events transpire, in which case the notes would be converted earlier than that date. The conversion rate is 141.4827 common shares per $1k principal amount of notes (in some cases, Opko may increase this rate for holders that convert their notes under special circumstances)--equating to $7.07 per share. (The company’s stock is presently averaging $5.70.)