OSI Pharma prices $100 million 20-year convertibles talked to yield 2%, up 25%

New York, Dec. 15 - OSI Pharmaceuticals Inc. priced $100 million of 20-year convertible senior subordinated notes after the close Thursday to yield 2% with an initial conversion premium of 25%.

The deal priced at a yield within talk of 1.75% to 2.25% and with an initial conversion premium at the rich end of the 20% to 25% talk.

UBS Investment Bank is bookrunner for the Rule 144A offering.

The conversion price is $29.43 and the ratio 33.9847.

The notes are non-callable for five years and have a put in years five, 10 and 15.

There is a $15 million over-allotment option.

OSI intends to use up to $25 million of proceeds to buy its common stock concurrently with pricing of the notes, as well as to enter into call spread transactions to reduce dilution from conversion of the notes. Remaining proceeds will be for general corporate purposes.

The hedging will increase the conversion premium to 70% from OSI's perspective.

Melville, N.Y.-based OSI Pharmaceuticals is an oncology-focused biotechnology company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.