Amyris to issue up to $60m in notes

An affiliate of Singaporean investment firm Temasek will purchase up to $60m in notes. 

Amyris has entered an agreement with a Temasek affiliate to issue up to $60 million in convertible notes, the firm announced in a statement last week.

Singapore-based Temasek, one of the renewable products company’s largest shareholders, will purchase $35 million in senior convertible promissory notes in an initial tranche. Amyris may elect for an additional $25 million to be sold as well. Both sales hinge on the approval of Amyris’ shareholders, who will vote on the deal in September.

The $35 million tranche will be due 60 months from the date of the issuance and will be converted into common stock at $2.44 per share, which represents a 15 percent discount to Amyris’ trailing 60-day weighted average closing price through 7 August. Those notes will accrue 5 percent interest per six months. Amyris is listed on the NASDAQ Stock Market.

The second tranche, which can be issued up to 24 months from the date of the securities purchase agreement, would be converted to common stock at $2.87 per share. The second tranche notes will carry a 10 percent annual interest rate.

“This funding will provide us with financial flexibility to help us achieve our business objectives,” said Amyris president and chief executive officer John Melo in a statement.  

Amyris’ aggregate revenue for the second quarter fell to $10.8 million over the second quarter, according to a recent earnings release. The company generated $19.3 million in revenue during the second quarter revenue of 2012, though $13.3 million of that was tied to sales in the company’s ethanol and ethanol-blended gasoline business, an area in which Amyris is no longer active.