Sciele greenshoe fully exercised to push 2.625% convertibles issue to $325 million

By Jennifer Chiou

New York, May 14 - Sciele Pharma Inc. said that its $40 million over-allotment option was exercised in full, raising its issue of 2.625% convertible senior notes to $325 million.

After the close on May 8, the company priced an upsized $285 million of the 20-year convertibles with an initial conversion premium of 47.5%.

As already reported, the convertibles were offered at par. The deal was talked at a coupon of 2.375% to 2.875% and an initial conversion premium of 45% to 50%.

The size of the deal was initially $250 million with an over-allotment option for an additional $37.5 million.

UBS Investment Bank and Thomas Weisel Partners were the bookrunners of the registered offering.

The convertibles are non-callable for the first five years and may be put in years five, 10 and 15.

There is a contingent conversion trigger at 120% of the conversion price and contingent payment of an additional 50 basis points at 120% of the principal.

The convertibles are dividend and takeover protected.

Sciele, an Atlanta-based pharmaceutical company, said it will use the proceeds to redeem its $150 million outstanding 1.75% convertible senior subordinated notes due 2024 and for future acquisitions, capital expenditures and other general purposes.

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