By Kenneth Lim
Boston, March 15 - Alpharma Inc. priced an upsized $300 million of 20-year convertible senior notes at the rich end of talk on Thursday after the market closed, to yield 2.125% with an initial conversion premium of 35%.
The convertibles were offered at par. They were talked at a coupon of 2.125% to 2.625% and an initial conversion premium of 30% to 35%.
The size of the deal was originally $200 million with an over-allotment option for a further $30 million. There is no longer any over-allotment option.
Banc of America was the bookrunner of the registered offering.
The convertibles are non-callable for the first seven years. They may be put in years seven, 10 and 15.
There is a contingent conversion trigger at 130% of the conversion price.
There is a contingent payment trigger at 130% of the principal.
The notes have dividend protection and takeover protection in the form of a change of control put with a make-whole premium.
There is a net-share settlement feature.
Alpharma, a Fort Lee, N.J.-based specialty pharmaceutical company, plans to use the proceeds of the deal to fund future business development transactions and general purposes.
| Issuer: | Alpharma Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Banc of America
|
| Amount: | $300 million
|
| Greenshoe: | None
|
| Maturity: | March 15, 2027
|
| Coupon: | 2.125%
|
| Price: | Par
|
| Yield: | 2.125%
|
| Conversion premium: | 35%
|
| Conversion price: | $32.60
|
| Conversion ratio: | 30.6725
|
| Contingent conversion: | 130%
|
| Contingent payment: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Change of control put with premium make-whole
|
| Call protection: | Non-callable before March 20, 2014
|
| Puts: | March 15, 2014; March 15, 2017; March 15, 2022
|
| Price talk: | 2.125%-2.625%, up 30%-35%
|
| Pricing date: | March 15 after the close
|
| Settlement date: | March 20
|
| Distribution: | Registered
|
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