Amyris synthesises the cash for collaboration

Amyris, a synthetic biology specialist, has announced the pricing of $75m senior convertible notes. The notes will mature on May 15, 2019. Amyris is granting the initial buyer an option to purchase up to an additional $15m. Morgan Stanley is acting as initial purchaser and sole book-running manager for the offering of the notes.
The notes will be convertible at any time at the option of holders up until May 14, 2019. Upon conversion, the notes will be settled in shares of common stock. The notes have an initial conversion rate of 267.0370 shares per $1,000 principal amount of notes – subject to adjustment – representing an effective conversion price of roughly $3.74 per share. This constitutes a 24% premium to the $3.02 per share closing price at the time of the announcement. The notes will be unsecured and unsubordinated obligations of Amyris. Interest will be payable semi-annually in cash at a rate of 6.5% per annum on each May 15 and November 15, beginning on November 15, 2014.
Founded in 2003 in San Francisco Bay by a group of scientists at the University of California, Berkeley, Amyris has found success in its industrial synthetic biology platform to create alternatives to petroleum-sourced products, fuels and chemicals. The company undertook its initial public offering in September 2010 and is trading on Nasdaq.
The company, which has about 400 employees, is planning to use the funding gained through the sale of the convertible notes, for general corporate purposes such as collaboration opportunities, strategic transactions or acquisitions.