Isis to price $125 million 20-year convertibles Wednesday, talked at 2.5%-3%, up 27.5%-32.5%

By Kenneth Lim

Boston, Jan. 16 - Isis Pharmaceuticals Inc. plans to price $125 million of 20-year convertible subordinated notes on Wednesday after the market closes, talked at a coupon of 2.5% to 3% and an initial conversion premium of 27.5% to 32.5%.

The notes will be offered at par.

There is an over-allotment option for a further $37.5 million.

Lehman Brothers is the bookrunner of the Rule 144A offering.

The notes will be non-callable for the first five years, with puts in years seven, 10 and 15.

There will be a contingent conversion hurdle at 120% of the conversion price.

The notes will have dividend and takeover protection.

Isis, a Carlsbad, Calif.-based drug maker, said it will use the proceeds of the deal to buy back its 5.5% convertible subordinated notes due 2009 and for general purposes.

© 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.