New Issue: Alexion sells $125 million convertible at 1.375%, up 35%

Nashville, Jan. 20 - Alexion Pharmaceuticals Inc. sold $125 million of seven-year non-callable convertible notes at par to yield 1.375% with a 35% initial conversion premium via sole bookrunner Morgan Stanley & Co. Inc.

The Rule 144A deal priced at the middle of yield guidance for a 1.125% to 1.625% coupon and at the aggressive end of guidance for a 30% to 35% initial conversion premium.

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.

Terms of the deal are:

Issuer:	Alexion Pharmaceuticals Inc.
Issue:	Convertible senior unsecured notes
Bookrunner:	Morgan Stanley & Co. Inc.
Co-managers:	JPMorgan Securities, SG Cowen and Bear Stearns
Amount:	$125 million
Greenshoe:	$25 million
Maturity:	Jan. 20, 2012
Coupon:	1.375%
Price:	Par
Yield:	1.375%
Conversion premium:	35%
Conversion price:	$31.46
Conversion ratio:	31.7914
Contingent conversion:	No
Contingent payment:	No
Dividend protection:	Yes
Takeover protection:	Yes
Call:	Non-callable
Price talk:	1.125-1.625%, up 30-35%
Pricing date:	Jan. 19, after market close
Settlement date:	Jan. 25
Distribution:	Rule 144A

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