AMAG ups offering to $500 million, talks eight-year notes to yield 7¾%-8%; pricing Wednesday

By Paul A. Harris

Portland, Ore., Aug. 12 – AMAG Pharmaceuticals Inc. upsized its offering of eight-year senior notes (B3/B+) to $500 million from $450 million and talked the notes to yield 7¾% to 8%, an informed source said.

Books close at 1 p.m. ET on Wednesday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Jefferies LLC is the left bookrunner for the offering. Barclays is the joint bookrunner.

The notes become callable after three years at par plus 75% of the coupon.

The Waltham, Mass.-based specialty pharmaceutical company plans to use the proceeds to help fund the acquisition of Cord Blood Registry, a stem cell collection and storage company serving pregnant women and their families, from GTCR for $700 million.

The $50 million of additional proceeds resulting from the upsizing of the notes offering will be used to fund cash on the balance sheet.

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