By Ronda Fears
Nashville, July 9 - Protein Design Labs Inc. sold $250 million of 20-year convertible notes at par to yield 2.75% with a 33% initial conversion premium, via lead manager UBS Investment Bank.
The Rule 144A deal sold at the aggressive end of yield talk for a 2.75% to 3.25% coupon and in the midrange of premium guidance for 30% to 35%.
A portion of proceeds will be used to collateralize the first three years of interest payments on the new notes.
The company said it may use up to $155 million of remaining proceeds to redeem the outstanding convertible notes.
After that, the company said proceeds would be used for acquisitions, working capital and other general corporate purposes, which includes the current expansion of manufacturing facilities.
Terms of the new deal are:
Issuer: Protein Design Labs Inc.
| Issue: | Convertible subordinated notes
|
| Lead manager: | | UBS Investment Bank
|
| Amount | $250 million
|
| Greenshoe: | $50 million
|
| Maturity: | Aug. 16, 2023
|
| Coupon: | 2.75%
|
| Price: | Par
|
| Yield: | 2.75%
|
| Conversion premium: | 33%
|
| Conversion price: | $20.14
|
| Conversion ratio: | 49.6618
|
| Call: | Non-callable for 5 years
|
| Put: | In years 7 (cash only), 10 and 15 (cash and/or stock)
|
| Price talk: | 2.75-3.25%, up 30-35%
|
| Pricing date: | July 8, after the close
|
| Settlement: | July 15
|
| Distribution: | Rule 144A
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