Auxilium Pharmaceuticals to sell $200 million 5.5-year convertibles at 1.75%-2.25%, up 27.5%-32.5%

By Rebecca Melvin

New York, Jan. 23 - Auxilium Pharmaceuticals Inc. launched an offering of $200 million of 5.5-year convertible bonds that was seen pricing after the market close Thursday and was talked to yield 1.75% to 2.25% with an initial conversion premium of 27.5% to 32.5%, according to a market source.

The registered, off-the-shelf deal has a $30 million greenshoe and was being sold via joint bookrunners Goldman Sachs & Co. and J.P. Morgan Securities LLC. Cowen & Co. and RBC Capital Markets are acting as co-managers.

The bonds are non-callable with no puts. There is takeover protection.

In connection with the offering, the company expects to enter into note hedge and warrant transactions or purchase a call spread.

Proceeds will be used for general corporate purposes, which many include the acquisition of businesses, products, or product rights or technologies, and also to pay for the call spread.

Based in Malvern, Pa., Auxilium is a specialty biopharmaceutical company.

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