Abgenix $200 million convertibles talked at 3.25-3.75% yield, up 15-20%

By Ronda Fears

Nashville, Tenn., Feb. 26 - Abgenix Inc. launched an overnight Rule 144A deal, pitching $200 million of five-year convertible subordinated notes with price talk of 3.25% to 3.75% yield and a 15% to 20% initial conversion premium. Credit Suisse First Boston is lead manager.

There is a $50 million greenshoe.

Fremont, Calif.-based Abgenix, a biopharmaceuticals company, said it intends to use proceeds for research and development, capital expenditures, working capital and other corporate purposes, which may include the acquisition of other businesses, products, product rights or technologies. The company has three antibody product candidates that are currently in clinical trials, for the treatment of psoriasis and rheumatoid arthritis, a variety of cancers and for the treatment of a transplant-related disease known as graft versus host disease.

Abgenix shares closed up 64c to $13.55, but were lower in after-hours trading.

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