New Issue: Protein Design Labs sells $250 million of convertibles to yield 2.0%, up 30%

Nashville, Feb. 9 - Protein Design Labs Inc. sold $250 million of seven-year convertible notes at par to yield 2.0% with at 30% initial conversion premium via sole bookrunner Goldman Sachs & Co.

The Rule 144A deal priced wide of yield guidance for a 1.25% to 1.75% coupon and at the cheap end of premium talk of 30% to 35%.

The Fremont, Calif.-based biotech concern said it expects to use proceeds for working capital and other general corporate purposes, including research and development, capital expenditures and expansion of manufacturing facilities. The company also said it may use a portion of proceeds to pay for the proposed acquisitions of ESP Pharma Holding Co. Inc. and the drug product Retavase and to acquire or invest in other complementary businesses, products or technologies.

Terms of the deal are:

Issuer:	Protein Design Labs Inc.
Issue:	Convertible senior unsecured notes
Bookrunner:	Goldman Sachs & Co.
Amount:	$250 million
Greenshoe:	$50 million
Maturity:	Feb. 15, 2012
Coupon:	2.0%
Price:	Par
Yield to maturity:	2.0%
Conversion premium:	30%
Conversion price:	$23.69
Conversion ratio:	4.2212
Contingent conversion:	No
Contingent payment:	No
Cash settlement option:	Yes
Dividend protection:	Yes
Takeover protection:	No
Call:	Non-callable for 5 years
Price talk:	1.25-1.75%, up 30-35%
Pricing date:	Feb. 8, after the close
Settlement date:	Feb. 14
Distribution:	Rule 144A

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