Amarin Corporation plc (ADR) (NASDAQ:AMRN) announced that it and its wholly owned subsidiary, Corsicanto II Designated Activity Company, have entered into separate, privately negotiated purchase agreements with certain investors pursuant to which the Issuer will issue and sell $30.0 million in aggregate principal amount of 3.50% Exchangeable Senior Notes due 2047 (the “2017 Notes”), which will be guaranteed by Amarin, at an issue price of 100%. The purchase agreements were entered into in contemplation of the surrender for purchase of approximately $15.0 million aggregate principal amount of 3.50% Exchangeable Senior Notes due 2032, which were issued in January 2012 by a subsidiary of Amarin (the “2012 Notes”). As detailed in an Amarin press release issued on December 16, 2016, Amarin was required by the terms of the indenture governing the 2012 Notes to purchase all 2012 Notes surrendered to it on January 19, 2017. As of today, approximately $0.1 million aggregate principal amount of 2012 Notes remain outstanding.
The 2017 Notes will be exchangeable into American Depositary Shares of Amarin (“ADSs”) at the option of the holders at an initial exchange rate of 257.2016 ADSs per $1,000 principal amount of 2017 Notes (equivalent to an initial exchange price of approximately $3.89 per ADS), subject to adjustment in certain circumstances. The exchange price represents a premium of approximately 35% over the last reported sale price of $2.88 per share of Amarin’s ADS on The NASDAQ Global Market on January 19, 2017. The transaction is expected to close on January 25, 2017, subject to customary closing conditions.
The net proceeds from the offering are expected to be $28.9 million after deducting placement agent fees and estimated offering expenses payable by Amarin. A portion of the net proceeds from the offering will replenish approximately $15.0 million of cash on hand that Amarin used to purchase substantially all of the 2012 Notes. Amarin anticipates that it will use such cash on hand and the remainder of the net proceeds from the offering for general corporate and working capital purposes.
Shares of Amarin closed yesterday at $2.88, down $0.04 or -1.37%. AMRN has a 1-year high of $3.65 and a 1-year low of $1.24. The stock’s 50-day moving average is $3.10 and its 200-day moving average is $3.00.
On the ratings front, Amarin has been the subject of a number of recent research reports. In a report issued on January 10, Cantor analyst Chiara Russo reiterated a Buy rating on AMRN, with a price target of $6.00, which implies an upside of 108% from current levels. Separately, on November 3, Jefferies’ Hugo Ong reiterated a Buy rating on the stock and has a price target of $4.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Chiara Russo and Hugo Ong have a yearly average loss of -6.4% and -0.3% respectively. Russo has a success rate of 36% and is ranked #4111 out of 4365 analysts, while Ong has a success rate of 52% and is ranked #3003.
Amarin Corp. Plc is a biopharmaceutical company, which engages in the commercialization and development of therapeutics for cardiovascular health. It has developed and markets Vascepa capsules through wholesale.