Rambus overnight $300 million convertible talked to yield 0%, up 45%-52%

By Ronda Fears

Nashville, Jan. 26 - Rambus Pharmaceuticals Inc. launched $300 million of five-year non-callable convertible notes after the market close Wednesday talked to yield 0% with a 45% to 52% initial conversion premium.

Credit Suisse First Boston is sole bookrunner of the overnight Rule 144A deal.

The notes will have full dividend and takeover protection.

There is a $60 million greenshoe available.

The Los Altos, Calif.-based memory chipmaker said it would use $75 million of proceeds to buy back stock and the remainder for general corporate purposes.

Rambus shares on Wednesday closed up 20 cents, or 1.09%, at $18.51. In after-hours trading, news of the convertible offering sent the stock down by 46 cents, or 2.49%.

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