Serologicals $100 million convertible talked at 4.25-4.75%, up 25-30%

Nashville, Aug. 13 - Serologicals Corp. launched $100 million of 30-year convertible notes talked to yield 4.25% to 4.75% with a 25% to 30% initial conversion premium for pricing after the close Thursday.

JPMorgan, Banc of America Securities and UBS Investment Bank are joint bookrunners of the Rule 144A deal.

The senior subordinated notes will have a 120% contingent conversion trigger.

The issue will be non-callable for five years. There is a cash put in year 5 and puts for cash and/or stock in years seven, 10, 15, 20 and 25.

Holders will have dividend protection by way of a conversion ratio adjustment.

There is a $20 million greenshoe available.

Serologicals, an Atlanta provider of biological products, said proceeds would be used to pay off the outstanding amount on its credit facility, which was drawn in association with its acquisition of Chemicon in April. Remaining proceeds will be used for general corporate purposes.

Serologicals shares closed Wednesday up 11c, or 0.83%, to $13.36.

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