OSI Pharmaceuticals $150 million convertibles talked 4.0-4.5% yield, up 17.5-22.5%

By Ronda Fears

Nashville, Tenn., Jan. 24 - OSI Pharmaceuticals Inc. launched $150 million of seven-year convertible subordinated notes with pricing guidance of a 4.0% to 4.5% yield and a 17.5% to 22.5% initial conversion premium.

Merrill Lynch & Co. is lead manager of the Rule 144A deal, which is scheduled to price after the close Tuesday.

There is a $30 million greenshoe available. There is a provisional call with a 150% hurdle for the first three years, then at 140%. There also is a make-whole provision for coupon payments. And, coupon payments will be collateralized for the first three years.

The Melville, N.Y.-based company said proceeds would be used for product development, licensing or acquisitions that add oncology products and late stage drug candidates, and general corporate purposes.

OSI shares closed down $1.84 to $44.06.

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