Pursuant to Rule 144A under the Securities Act of 1933, Flexion Therapeutics Inc (NASDAQ:FLXN) made public the pricing of $175.0 million aggregate principal amount of 3.375%. The announcement of the convertible senior notes, which are due in 2024 was however made to qualified institutional buyers. There was a notable increase of the offering by $50 million from the $125 million previously announced.

Flexion’s estimates to collect $169.5 million as net proceeds

The pharmaceutical company has a projection of making not less than $169.5 million from the Notes offering as the net proceeds. In the meantime, it has given an approval for an additional $26.25 million aggregate principal amount of the Notes to initial purchasers of the Notes. The offer will run for 30 days.

The purchase of the Notes will attract an interest of 3.375% per year, which will be payable semiannually in arrears. That means the payment will be on May 1 and November 1 of each year, with the first one taking effect on November 1, 2017. Unless redeemed or converted earlier, the maturity of the Notes is expected to be on May 1, 2024.

Flexion has pointed out different ways in which it plans to use the proceeds. Among other things, a portion of it will go to the licensing and acquiring of complementary businesses, assets, and technologies.

But Flexion may redeem, for cash, all or any portion of the Notes

Initially, the Notes will have a conversion rate of 37.3413 shares of common stock. The conversion is a representation of a first-rate of roughly 30% of the $20.60 per share closing price of Flexion’s common stock. The Notes will be convertible at any time and at the option of holders. It is worth noting that the Notes are being sold only to qualified institutional buyers.

Nonetheless, Flexion will have an option of redeeming the notes for cash, either all or a portion of them. This must be on or after May 6, 2020. In the meantime, Flexion’s stock closed at $20.60 a fall of $5.36 or 20.65%