CV Therapeutics to price $100 million convertibles talked at 3.25%-3.75%, up 20%-25%

Princeton, N.J., June 22 - CV Therapeutics Inc. launched after the markets closed Wednesday a $100 million offering of eight-year convertible senior subordinated notes, talked to yield 3.25% to 3.75% with an initial conversion premium of 20% to 25%.

The deal is expected to price Tuesday.

Lehman Brothers and Merrill Lynch & Co., Inc. are joint bookrunners of the convertibles offering and are joint lead managers of a concurrent offering of 6 million shares of common stock.

Citigroup and Deutsche Bank Securities are acting as co-managers of the convertible debt offering.

The eight-year notes are non-callable for five years, and there are no puts.

A $12.5 million greenshoe is included.

The Palo Alto, Calif.-based biopharmaceutical company intends to use a portion of net proceeds from the convertibles to repurchase some or the entire outstanding $79.6 million principal of its 4.75% convertible subordinated notes due 2007.

The company will also use a portion of net proceeds to fund an escrow account to provide security for the first six scheduled interest payments on the notes.

Remaining net proceeds will be used for general corporate purposes, including research, or to increase working capital, reduce debt and make acquisitions.

Shares of CV Therapeutics on Wednesday traded down 28 cents, or 1.2%, to $22.94. In after-hours trading, the stock dropped $1.81, or 7.89%.

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