Priceline.com sells $500 million five-year convertibles to yield 1.25%, up 30%

New York, March 4 - Priceline.com Inc. priced $500 million of five-year convertible notes to yield 1.25% with a 30% initial conversion premium after the close Thursday.

The deal, launched early Thursday, came at the middle of talk for a yield of 1% to 1.5% with a 27.5% to 32.5% initial conversion premium.

The conversion price is $303.06 and the conversion ratio 3.2997.

The Rule 144A deal was sold via joint bookrunners J.P. Morgan Securities Inc. and Bank of America Merrill.

There is a $75 million over-allotment option.

Proceeds will be used to repurchase up to $100 million of the company's outstanding common stock in privately negotiated, off-market transactions, which may be effected through one or more of the initial purchasers of the notes or their respective affiliates, concurrently with the offering.

Proceeds will also be used for general corporate purposes, which may include repurchasing shares of Priceline.com common stock in the open market or in privately negotiated transactions from time to time, repaying outstanding debt and funding corporate acquisitions.

In connection with the proposed note offering, Priceline.com's board authorized the repurchase of up to $500 million of Priceline.com common stock, including up to $100 million of common stock to be repurchased concurrently with the offering.

Priceline is a Norwalk, Conn.-based online travel agency.

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