Illumina to price $800 million 0.25% five-year convertibles at possible discount reoffer, up 30%

By Rebecca Melvin

New York, March 14 - Illumina Inc. planned to price $800 million of five-year convertible senior notes late Monday at a possible reoffer price of 98.5 to par, a fixed 0.25% coupon and a 30% initial conversion premium, according to market sources.

The Rule 144A notes, which have a $120 million greenshoe, were being sold via Morgan Stanley & Co. Inc. and Goldman Sachs & Co. as the bookrunners, with Bank of America Merrill Lynch as a co-manager.

The notes are non-callable and may not be put.

The notes have full dividend and takeover protection.

Illumina, a San Diego-based developer of genetic research tools, said it will use $425 million of the proceeds to buy back its common stock in privately negotiated transactions and up to $390 million to buy back convertibles, as well as to fund general purposes, which may include acquisitions and additional stock purchases.

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