By Ronda Fears
Nashville, July 11 - Indevus Pharmaceuticals Inc. sold an upsized $60 million of five-year convertible notes at par to yield 62.5% with a 30% initial conversion premium, via lead manager Lehman Brothers.
The Rule 144A deal, upped from $50 million, provided more yield than the price talk for a 5.25% to 5.75% coupon but was issued at the aggressive end of premium guidance of 25% to 30%.
Holders have dividend protection in the form of a conversion ratio adjustment.
There is a $10 million greenshoe available.
Indevus plans to use proceeds for continued development and pre-marketing activities for its lead product, trospium, clinical development of other product candidates, acquisitions, working capital and general corporate purposes.
Terms of the new deal are:
Issuer: Indevus Pharmaceuticals Inc.
| Issue: | Convertible senior notes
|
| Lead managers: | | Lehman Brothers
|
| Amount | $60 million, up from $50 million
|
| Greenshoe: | $12 million, up from $10 million
|
| Maturity: | July 15, 2008
|
| Coupon: | 6.25%
|
| Price: | Par
|
| Yield: | 6.25%
|
| Conversion premium: | 30%
|
| Conversion price: | $6.66
|
| Conversion ratio: | 150.2404
|
| Call: | Non-callable for 3 years, then with 150% hurdle
|
| Price talk: | 5.25-5.75%, up 25-30%
|
| Pricing date: | July 10, after the close
|
| Settlement: | July 16
|
| Distribution: | Rule 144A
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
