Alexion $125 million convertible talked to yield 1.125%-1.625%, up 30%-35%

By Ronda Fears

Nashville, Jan. 18 - Alexion Pharmaceuticals Inc. launched $125 million of seven-year non-callable convertible notes after the market close Tuesday talked to yield 1.125% to 1.625% with a 30% to 35% initial conversion premium for Wednesday's business.

Morgan Stanley & Co. Inc. is sole bookrunner of the Rule 144A deal, which is slated to price after Wednesday's close. Co-managers are JPMorgan Securities, SG Cowen and Bear Stearns.

The senior unsecured notes will have full dividend and takeover protection.

Cheshire, Conn.-based Alexion, which is engaged in the discovery of treatments for hematologic, cardiovascular and autoimmune disorders, said it would use proceeds from the new convertible to retire its 5.75% convertibles due 2007.

Alexion shares on Tuesday climbed $1.85, or 8.08%, to close at $24.48. In after-hours trading, news of the convertible offering sent the stock down by $1.17, or 4.78%.

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