WALTHAM, Mass.--(BUSINESS WIRE)--ImmunoGen, Inc. (NASDAQ: IMGN) today announced the pricing of $100 million aggregate principal amount of its 4.50% convertible senior notes due 2021 in a private placement. The Notes will be offered by the initial purchasers only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. ImmunoGen also granted the initial purchasers of the Notes an option, exercisable for 30 days, to purchase up to an additional $15 million aggregate principal amount of the Notes on the same terms and conditions to cover any overallotments.
The sale of the Notes to the initial purchasers is expected to settle on June 20, 2016, subject to customary closing conditions, and is expected to result in $96.7 million net proceeds to ImmunoGen, assuming no exercise of the initial purchasers’ option to purchase additional Notes, or $111.2 million if the initial purchasers exercise their option to purchase additional Notes in full, after deducting the initial purchasers’ discounts and commissions and the estimated offering expenses payable by ImmunoGen.
The Notes will be senior unsecured obligations of ImmunoGen, and will bear interest at a rate of 4.50% per year. Interest will be payable semi-annually in arrears on January 1 and July 1 of each year, beginning January 1, 2017. The Notes will mature on July 1, 2021, unless earlier converted or repurchased.
ImmunoGen intends to the use net proceeds of the offering for its operations, including but not limited to clinical trial expenditures, including the manufacture of ImmunoGen’s experimental therapies, other research and development expenditures, and other corporate purposes, capital expenditures and working capital.
About ImmunoGen
ImmunoGen is a clinical-stage biotechnology company that develops targeted cancer therapeutics using its proprietary antibody-drug conjugate (“ADC”) technology. ImmunoGen’s lead product candidate, mirvetuximab soravtansine, is being advanced to Phase 3 testing for FR?-positive platinum-resistant ovarian cancer, and is also in Phase 1b/2 testing in combination regimens for earlier-stage disease. ImmunoGen’s ADC technology is used in Roche's marketed product, Kadcyla®, and in three other clinical-stage ImmunoGen product candidates, and in programs in development by partners Amgen, Bayer, Biotest, CytomX, Lilly, Novartis, Sanofi and Takeda.