InterMune to sell $100 million seven-year convertibles to yield 3.25%-3.75%, up 27.5%-32.5%

By Rebecca Melvin

New York, Sept. 12 - InterMune Inc. plans to sell $100 million of seven-year convertible bonds after the market close Tuesday that were talked to yield 3.25% to 3.75% with an initial conversion premium of 27.5% to 32.5%, according to a syndicate source.

Concurrently, InterMune plans to sell 4 million common shares.

The registered notes, which will mature Sept. 15, 2018 and have a $15 million greenshoe, were being sold via joint bookrunners Goldman Sachs & Co. and J.P. Morgan Securities LLC. Co-managers were to be determined, the syndicate source said.

The notes are non-callable until Sept. 20, 2015 and then provisionally callable subject to a 130% price hurdle.

Proceeds will be used to fund the commercial launch its Esbriet drug in the European Union, to fund its Ascend trial and for general corporate purposes.

Brisbane, Calif.-based InterMune is a biotech concern focused on treatments for pulmonary, infectious and hepatic diseases.

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