New Issue: Regeneron $200 mln convertibles sold at 5.5% yield, up 12%

By Ronda Fears

Nashville, Tenn., Oct. 12 - Regeneron Pharmaceuticals Inc. launched and sold $200 million of seven-year convertible senior subordinated notes on Friday to yield 5.5% with a 12% initial conversion premium, upsizing the deal amount from $150 million and pricing in the middle of price talk. Merrill Lynch & Co. was lead manager of the Rule 144A deal. Price talk had put the yield in a range of 5.25% to 5.75% and the premium between 10% and 14%.

The Tarrytown, N.Y.-based pharmaceutical firm plans to use proceeds for preclinical and clinical development, expansion of manufacturing facilities, research, working capital and general corporate purposes. The company's product pipeline includes product candidates for the treatment of obesity, rheumatoid arthritis and other inflammatory conditions, cancer and related disorders, allergies, asthma, and other diseases and disorders.

Terms of the new deal are:

Issuer: Regeneron Pharmaceuticals Inc.

Amount: $200 million

Greenshoe: $50 million,

Lead Manager: Merrill Lynch

Maturity Date: 2008

Coupon: 5.5%

Issue Price: par

Yield: 5.5%

Conversion Premium: 12%

Conversion Price: $30.25

Conversion Ratio: 33.05785

Call: provisional call for years 1-3 at 150% trigger and in years 4-7 at 140% trigger;

there is a make-whole provision for coupon payment in the first three years, with

interest secured by an escrow account backed by U.S. Treasury notes

Settlement Date: Oct. 17

End

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