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Aceto: 4 Tri Harbor Court

The following excerpt is from the company's SEC filing.

Port Washington, New York 11050

“Sourcing and Supplying Quality Products Worldwide”



ACETO Corporation Announces $125 Million Convertible Notes Offering



its intention to offer, subject to market conditions and other factors, $125,000,000 aggregate principal amount of convertible senior notes due 2020 (the "notes") in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1 933, as amended (the "Act"). ACETO also expects to grant the initial purchasers an option to purchase up to an additional $18,750,000 aggregate principal amount of the notes within 13 days of the initial closing of the notes offering, solely to cover over-allotments. Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are acting as bookrunners.

The notes will be unsecured obligations of ACETO and will rank senior in right of payment to any of ACETO’s subordinated indebtedness, equal in right of payment to all of ACETO’s unsecured indebtedness that is not subordinated, effectively junior in right of payment to any of ACETO’s secured indebtedness and structurally junior in right of payment to all indebtedness of ACETO’s subsidiaries. Interest will be payable semi-annually in arrears. The notes will be convertible into cash, shares of ACETO common stock or a combination thereof, at ACETO’s election, upon the satisfaction of specified conditions and during certain periods. The interest rate, initial conversion rate and other terms of the notes are to be determined upon pricing of the offering.

ACETO expects to use a portion of the net proceeds from the offering to reduce the indebtedness under its existing credit facilities to $29.8 million (from $112.0 million at October 31, 2015) and a portion of the net proceeds to pay the cost of convertible note hedge transactions described below (after that cost is partially offset by the proceeds to ACETO from the warrant transactions described below). The remaining net proceeds from the offering will be used for general corporate purposes, which may include funding research, development and product manufacturing, acquisitions or investments in businesses, products or technologies that are complementary to ACETO’s own, increasing working capital and funding capital expenditures.

In connection with the offering of the convertible notes, ACETO expects to enter into privately negotiated convertible note hedge transactions with Wells Fargo Bank, National Association and JPMorgan Chase Bank, National Association (the "option counterparties"), affiliates of certain of the initial purchasers. The convertible note hedge transactions are generally...