New River closes $135 million convertibles sale with partial exercise of greenshoe

By Laura Lutz

Des Moines, July 25 - New River Pharmaceuticals Inc. announced it closed its sale of convertibles with the exercise of $10 million of the $18.75 million over-allotment option, bringing the size of the deal to $135 million.

The remainder of the greenshoe can be exercised for up to $8.75 million additional securities until Aug. 7.

The offering of convertible subordinated notes due 2013 priced July 20 with a coupon of 3.5% and an initial conversion premium of 25%.

Merrill Lynch was the bookrunner of the Rule 144A offering.

The proceeds of the deal will be used to buy back $51 million worth of New River stock, of which $41 million was used for a borrow facility. Some of the proceeds will also be used to fund convertible note hedge transactions, and any remaining monies will be used as working capital to develop New River's attention deficit hyperactivity disorder drug NRP104.

New River is a Radford, Va.-based specialty drug maker.

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