Nashville, Feb. 11 - InterMune Inc. sold $150 million of seven-year convertibles at par to yield 0.25% with a 17.5% initial conversion premium via sole bookrunner Morgan Stanley & Co.
The Rule 144A deal priced at the middle of guidance of 0.0% to 0.5%, up 15% to 20%.
Settlement at maturity is in cash and/or stock, at the company's option.
Holders will have full dividend protection.
Brisbane, Calif.-based InterMune, a biotech concern focused on treatments for pulmonary, infectious and hepatic diseases, said proceeds would be used to redeem its outstanding 5.75% convertible subordinated notes due 2006 before and/or during third quarter. But, the company also said that it may determine not to purchase or redeem any or all of these outstanding notes. If not, proceeds will be used for general corporate purposes.
Terms of the deal are:
| Issuer: | InterMune Inc.
|
| Issue: | Convertible senior notes
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| Bookrunner: | Morgan Stanley & Co.
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| Joint lead manager: | Banc of America Securities
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| Amount: | $150 million
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| Greenshoe: | $20 million
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| Maturity: | Feb. 15, 2011
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| Coupon: | 0.25%
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| Price: | Par
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| Yield: | 0.25%
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| Conversion premium: | 17.5%
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| Conversion price: | $21.6318
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| Conversion ratio: | 46.2283
|
| Call: | Non-callable
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| Price talk: | 0-0.5%, up 15-20%
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| Pricing date: | Feb. 10, after the close
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| Settlement date: | Feb. 17
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| Distribution: | Rule 144A
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