New Issue: Safeguard sells upsized $125 million convertible at 2.625%, up 38%

Nashville, Feb. 12 - Safeguard Scientifics Inc. sold at upsized $125 million of 20-year convertible notes at par to yield 2.625% with a 38% initial conversion premium via sole bookrunner Wachovia Securities.

The Rule 144A deal, upped from $100 million, sold right at the middle of price talk of 2.375% to 2.875%, up 34% to 42%.

Holders will have dividend protection.

Wayne, Pa.-based Safeguard, an information technology firm focused in the healthcare and life sciences industries, said proceeds would be used to partially repay its 5% convertible subordinated notes due June 15, 2006.

Terms of the deal are:

Issuer:	Safeguard Scientifics Inc.
Issue:	Convertible senior unsecured debentures
Bookrunner:	Wachovia Securities
Amount:	$125 million, upped from $100 million
Greenshoe:	$25 million, unchanged
Maturity:	March 15, 2024
Coupon:	2.625%
Price:	Par
Yield:	2.625%
Conversion premium:	38%
Conversion price:	$7.22
Conversion ratio:	138.554
Call:	Non-callable for 5 years, then with 140% hurdle for 2 years
Put:	In years 7, 10 and 15, in cash
Price talk:	2.375-2.875%, up 34-42%
Pricing date:	Feb. 11, after the close
Settlement date:	Feb. 18
Distribution:	Rule 144A

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