Abgenix $150 million convertible talked to yield 1.75%-2.25%, up 25%-30%

Nashville, Dec. 14 - Abgenix Inc. launched $150 million of seven-year convertible notes after the close Tuesday with price talk for a 1.75% to 2.25% coupon and 25% to 30% initial conversion premium.

Goldman Sachs & Co. is sole bookrunner of the Rule 144A deal, which is slated to price after the market close Wednesday.

The senior unsecured notes will be non-callable for five years.

There is full dividend and takeover protection for holders.

Fremont, Calif.-based Abgenix, a biotechnology firm focused on treatments for cancer, inflammation, metabolic, autoimmune, cardiovascular and infectious diseases, intends to use some proceeds from time to time to retire a portion of its outstanding 3.5% convertible notes due 2007. Otherwise, the company plans to use proceeds for research and development, capital expenditures, working capital and other corporate purposes.

Abgenix shares closed Tuesday up 8 cents, or 0.75%, to $10.68.

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