Indivior hooks investors with upsized US$450m raise
Indivior Pharmaceuticals eased the pain of raising an upsized US$450m late on Thursday from the sale of a 2031 convertible bond by buying back stock, providing built-in borrow for arbs participating in the deal.
Despite the commitment to buy back US$75m of stock, the specialty pharmaceuticals maker’s shares slipped 6% over the one-day marketing period on Thursday to US$30.86.
Nevertheless, Jefferies, Barclays, Piper Sandler and Truist Securities were able to increase the deal to US$450m from US$400m, priced at 0.625% up 35%, the aggressive ends of 0.625%–1.125% and 30%–35%.
The developer of treatments for extreme opioid abuse is using the proceeds ex-buyback to repay the entirety of a US$333m note on which it pays SOFR+5.5%. That note agreement signed in 2024 was a predecessor financing to a new US$50m undrawn credit facility.
Indivior re-domiciled to the US from the UK earlier this year to better align with growth opportunities.
Treating extreme addiction to opioid is an extremely profitable business. Indivior generated a record US$428m of adjusted Ebitda last year on revenue of US$856m. It expects adjusted Ebitda and revenue this year of US$535m–$575m in 2026 adjusted Ebitda on US$1.13bn–$1.20bn net revenue.
Earlier this week, Indivior released results of a trial that showed 12-month adherence to its injectable treatment for moderate to severe opioid use disorder lowers medical costs.