October 4, 2018 / 3:50 PM / 2 months ago

BUZZ-Tilray rolls out convertible with potential to grow

** Tilray shares down >5 pct at $148.40 as cannabis maker gets set to raise capital less than 3 months after its IPO

** After the bell Weds, co launched $400 mln, 5-year convertible senior notes offering and released preliminary Q3 financial results

** Cowen, BMO and BofA-ML are bookrunners and marketing convertible with coupon of 4.75-5.25 pct, convertible premium of 12.5-17.5 pct; deal slated to price after market close today

** Sources say bookrunners communicated that proposed capital raise was discussed confidentially with a select group of institutional investors (“wall cross”) for 3 days prior to launch

** Early this morning, bookrunners said deal was already oversubscribed with strong order flow from existing and new investors; seeing limited price sensitivity and base deal of $400 mln has potential to grow (sources)

** Tilray’s stock has skyrocketed since co raised $153 mln in its mid-Jul IPO. At $17 issue price, co was valued at ~$2 bln vs current market value of about $14 bln

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