New Issue: Abgenix $200 million convertibles yield 3.5%, up 15%

By Ronda Fears

Nashville, Tenn., Feb. 27 - Abgenix Inc. sold $200 million of five-year convertible notes at par to yield 3.5% with a 15% initial conversion premium. Credit Suisse First Boston was lead manager of the overnight Rule 144A deal, which sold at the middle of yield guidance and the cheap end of premium price talk.

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.

Terms of the new deal are:

Issuer: Abgenix Inc.

Amount: $200 million

Greenshoe: $50 million

Lead Manager: Credit Suisse First Boston

Maturity Date: March 15, 2007

Coupon: 3.5%

Issue Price: par

Yield-to-maturity: 3.5%

Conversion Premium: 15%

Conversion Price: $27.58

Conversion Ratio: 36.2621

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

with make-whole provision for coupon payments

Settlement Date: March 4

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