New Issue: First Horizon Pharma $125 million convertible yields 1.75%, up 35%

Nashville, March 2 - First Horizon Pharmaceutical Corp. sold $125 million of 20-year convertible notes at par to yield 1.75% with a 35% initial conversion premium via joint bookrunners Deutsche Bank Securities and UBS Investment Bank.

The Rule 144A deal sold at the aggressive end of yield talk for a 1.75% to 2.25% coupon and aggressively outside of guidance for a 27% to 31% initial conversion premium.

The Alpharetta, Ga.-based specialty drugmaker said proceeds would be used for acquisitions and general corporate purposes.

Terms of the deal are:

Issuer:	First Horizon Pharmaceutical Corp.
Issue:	Convertible senior subordinated notes
Bookrunners:	Deutsche Bank Securities and UBS Investment Bank
Amount:	$125 million
Greenshoe:	$25 million
Maturity:	March 2024
Coupon:	1.75%
Price:	Par
Yield:	1.75%
Conversion premium:	35%
Conversion price:	$22.15
Conversion ratio:	45.1467
Call:	Non-callable for 3 years
Put:	In years 5, 10 and 15
Price talk:	1.75-2.25%, up 27-31%
Pricing date:	March 2, after the close
Settlement date:	March 8
Distribution:	Rule 144A

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