Auxilium upsizes 5.5-year convertibles to $300 million; talk revised to 1.5% coupon, up 32.5%

By Rebecca Melvin

New York, Jan. 24 - Auxilium Pharmaceuticals Inc.'s offering of 5.5-year convertible bonds was upsized during marketing to $300 million from $200 million, and pricing was tightened to a 1.5% coupon, which was through the rich end of talk, and at an initial conversion premium of 32.5%, which was at the tight end of talk, according to a syndicate source.

Initially, the deal, which was still expected to be finalized after the market close Thursday, was talked to yield 1.75% to 2.25% with an initial conversion premium of 27.5% to 32.5%.

The registered, off-the-shelf deal now has a $45 million greenshoe, which was raised from $30 million.

Joint bookrunners are Goldman Sachs & Co. and J.P. Morgan Securities LLC, with co-managers Cowen & Co. and RBC Capital Markets.

As previously reported, the bonds are non-callable with no puts. There is takeover protection. And 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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