InterMune to sell $85 million four-year convertibles to yield 3.125%-3.625%, up 25%-30%

By Rebecca Melvin

New York, Jan. 14 - InterMune Inc. plans to price $85 million of four-year convertible bonds after the market close Tuesday that were talked to yield 3.125% to 3.625% with an initial conversion premium of 25% to 30%, according to a syndicate source.

Concurrently, InterMune plans to sell 12.5 million common shares.

The registered, off-the-shelf notes have a $12.75 million greenshoe, and there is an option to purchase up to an additional 1.875 million shares of common stock.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are the joint bookrunners.

The notes will be non-callable for a year and provisionally callable for 2.5 years if the price of shares is 130% of the conversion price.

Proceeds from both offerings will be used to repurchase early or at maturity the company's outstanding 5% convertible senior notes due 2015, as well as to fund the commercialization of Esbriet, to fund InterMune's 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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