Onyx prices $200 million seven-year convertibles to yield 4%, up 30%

New York, Aug. 6 - Onyx Pharmaceuticals, Inc. priced $200 million of seven-year convertible senior notes on Thursday after the market closed to yield 4% with an initial conversion premium of 30%.

The deal came richer than talk for a yield of 4% to 4.5% with an initial conversion premium of 20% to 25%.

The conversion price is $39.65 and the conversion ratio 25.2207.

Onyx concurrently sold 4 million common shares at $30.50 each.

The convertibles have a greenshoe of $30 million while the stock sale's over-allotment option is 600,000 shares.

Bookrunner for the off-the-shelf convertible sale was Goldman Sachs & Co.

The convertibles are non-callable for the first four years and after that with a 130% hurdle.

The notes are convertible only after May 15, 2016. Onyx has the option to settle conversions in cash, stock or a combination.

Onyx is an Emeryville, Calif.-based biopharmaceutical company that focuses on cancer treatments.

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