January 18, 2019 / 1:46 PM / 9 months ago

BUZZ-Aurora Cannabis lifts on upsized convertible debt offering

** U.S.-listed shares of Aurora Cannabis Inc up 1.7 pct at $6.68 premarket after co boosts the size of its convertible offering

** Canadian cannabis producer prices $300 mln, 5-yr convertible senior notes in private placement

** Offering upsized from $250 mln; gets done with 5.5 pct coupon, convertible premium of 10 pct, the investor-friendly end of marketed terms (5-5.5 pct coupon, up 10-15 pct)

** Joint bookrunners BMO and Cowen communicate this morning that deal was 2x covered even on the upsize, capital markets source familiar with the deal says

** Bookrunners say order book comprises good mix of fundamental and hedge-fund investors; 80 pct of deal allocated to top 20 accounts (source)

** Aurora expects to use net proceeds from offering to fund Canadian and international expansion, future acquisitions, among other uses

** ACB.N dropped ~10 pct on Thurs on trading volume of 41.6 mln shares, 2.5x the 30-DMA, after co launched its offering

** U.S.-listed shares up ~33 pct in 2019, following a drop of 33 pct last year

** Cannabis-focused ETFMG Alternative Harvest ETF up ~1 pct premarket

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