Amylin narrows talk on upsized $500 million seven-year convertibles to 2.75%-3%, up 40%

By Kenneth Lim

Boston, June 4 - Amylin Pharmaceuticals Inc. upsized its offering of seven-year convertible senior notes to $500 million and narrowed price talk to a coupon of 2.75% to 3% with an initial conversion premium of 40%.

The deal was expected to price Monday after the market closed. Price talk was originally at a coupon of 2.5% to 3% and an initial conversion premium of 37.5% to 42.5%. The convertibles were offered at par.

The size of the deal was originally $400 million with an over-allotment option for a further $50 million. The greenshoe is now for an additional $75 million.

Goldman Sachs and Morgan Stanley are the bookrunners of the Rule 144A offering.

The convertibles will be non-callable and may not be put.

There will be a contingent conversion trigger at 130% of the conversion price.

The convertibles will have dividend and takeover protection.

There will be a net-share settlement option.

Amylin, a San Diego-based biopharmaceutical company, said the proceeds of the deal will be used to develop its late-stage product candidates and fund research and development, operating expenses, potential acquisitions and other general purposes.

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