Collegium Pharmaceutical, Inc. Prices Upsized $210.0 Million Convertible Senior Notes Offering

STOUGHTON, Mass., Feb. 07, 2023 (GLOBE NEWSWIRE) -- Collegium Pharmaceutical, Inc. (Nasdaq: COLL) today announced the pricing of its offering of $210,000,000 aggregate principal amount of 2.875% convertible senior notes due 2029 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering was upsized from the previously announced offering size of $175,000,000 aggregate principal amount of notes. Collegium also granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date the notes are first issued, up to an additional $31,500,000 principal amount of notes. The sale of the notes to the initial purchasers is expected to settle on February 10, 2023, subject to customary closing conditions.

The notes will be senior, unsecured obligations of Collegium and will accrue interest at a rate of 2.875% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2023. The notes will mature on February 15, 2029, unless earlier repurchased, redeemed or converted. Before November 15, 2028, noteholders will have the right to convert their notes only upon the occurrence of certain events. From and after November 15, 2028, noteholders will have the right to convert their notes at any time at their election until the close of business on the scheduled trading day immediately before the maturity date. Collegium will settle conversions by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at Collegium’s election. The initial conversion rate is 27.3553 shares of common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $36.56 per share of common stock. The initial conversion price represents a premium of approximately 30% over the last reported sale price of $28.12 per share of Collegium’s common stock on February 7, 2023. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.