New Issue: Incyte upsized $200 million convertible yields 3.5%, up 35%

Nashville, Feb. 13 - Incyte Corp. sold $150 million of seven-year convertible notes at par to yield 3.5% with a 35% initial conversion premium via sole bookrunner Morgan Stanley & Co.

The Rule 144A deal, upsized from $150 million, priced at the middle of guidance of 3.25% to 3.75%, up 32.5% to 37.5%.

The Wilmington, Del.-based biotech concern said proceeds would be used to repay existing debt, which may include its 5.5% convertible notes due 2007.

Terms of the deal are:

Issuer:	Incyte Corp.
Issue:	Convertible subordinated notes
Bookrunner:	Morgan Stanley & Co.
Amount:	$200 million, upped from $150 million
Greenshoe:	$50 million, unchanged
Maturity:	Feb. 15, 2011
Coupon:	3.5%
Price:	Par
Yield:	3.5%
Conversion premium:	35%
Conversion price:	$11.22
Conversion ratio:	89.1266
Call:	Non-callable for 3 years
Price talk:	3.25-3.75%, up 32.5-37.5%
Pricing date:	Feb. 12, after the close
Settlement date:	Feb. 19
Distribution:	Rule 144A

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