By Kenneth Lim
Boston, May 15 - Inverness Medical Innovations Inc. sold an upsized $150 million of 10-year convertible senior subordinated notes on Tuesday to yield 3% with an initial conversion premium of 30%.
The deal originally priced on May 9 as a $132.5 million offering.
UBS Investment Bank was lead agent on the Regulation D deal with Jefferies & Co. as co-agent.
The initial conversion price of $52.30 may be reset lower on the first year if Inverness common stock trades below the reference price of $40.23.
The convertibles are non-callable and may not be put.
The convertibles have dividend and takeover protection.
Inverness, a Waltham, Mass.-based developer of in vitro diagnostic products, said the proceeds of the deal will be used to fund general corporate purposes, including acquisitions. The company on Tuesday won bidding for medical test maker Biosite Inc. with a $1.7 billion, or $92.50 per share, offer.
| Issuer: | Inverness Medical Innovations Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | UBS Investment Bank
|
| Amount: | $150 million
|
| Maturity: | May 15, 2017
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 30%
|
| Conversion price: | $52.30
|
| Conversion ratio: | 19.1208
|
| Conversion price reset: | On May 15, 2008, conversion price may be reset if common stock trades below $40.23, subject to floor of $40.23
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Pricing date: | May 9
|
| Settlement date: | May 14
|
| Distribution: | Regulation D
|
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