New Issue: Isis Pharma $125 million convertibles at 5.5% yield, up 25%

By Ronda Fears

Nashville, Tenn., April 26 - Isis Pharmaceuticals Inc. sold $125 million of seven-year convertible subordinated notes at par to yield 5.5% with a 25% initial conversion premium via lead manager UBS Warburg. The Rule 144A deal sold at the cheap end of yield talk and at the aggressive end of premium guidance.

Carlsbad, Calif.-based Isis plans to use about $74 million of proceeds to retire its 14% senior subordinated notes due November 2007 and the remainder for research, drug discovery and development programs, and other general corporate purposes, including debt repayment.

Terms of the new deal are:

Issuer: Isis Pharmaceuticals Inc.

Amount: $125 million

Greenshoe: $18.75 million

Lead Managers: UBS Warburg

Maturity Date: May 1, 2009

Coupon: 5.5%

Issue Price: par

Yield: 5.5%

Conversion Premium: 25%

Conversion Price: $16.625

Conversion Ratio: 60.15

Call: non-callable for three years with 150% hurdle

Settlement Date: May 1

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