By Kenneth Lim
Boston, April 20 - St. Jude Medical Inc. priced $1.2 billion of 20-month convertible senior unsecured debentures within talk on Thursday to yield 1.22% with an initial conversion premium of 20%.
The convertibles were offered at par. They were talked at a coupon of 1% to 1.5% and an initial conversion premium of 17.5% to 22.5%.
The size of the deal was originally $1 billion, but the over-allotment option of $200 million was immediately exercised.
Banc of America was the bookrunner of the Rule 144A offering.
The convertibles are non-callable and may not be put.
There is a contingent conversion trigger at 130% of the conversion price.
The debentures have dividend and takeover protection.
There is a net-share settlement option.
St. Jude Medical, a St. Paul, Minn.-based maker of cardiovascular medical devices, said it will use the proceeds of the deal to repay debt that was incurred in its $700 million stock buyback in February. It will also buy back up to $300 million of its common stock and fund convertible note hedge and warrant transactions.
| Issuer: | St. Jude Medical Inc.
|
| Issue: | Convertible senior unsecured debentures
|
| Bookrunner: | Banc of America
|
| Amount: | $1.2 billion, including $200 million greenshoe already exercised
|
| Greenshoe: | $200 million, already exercised
|
| Maturity: | Dec. 15, 2008
|
| Coupon: | 1.22%
|
| Price: | Par
|
| Yield: | 1.22%
|
| Conversion premium: | 20%
|
| Conversion price: | $52.06
|
| Conversion ratio: | 19.2101
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 1%-1.5%, up 17.5%-22.5%
|
| Pricing date: | April 19, after the close
|
| Settlement date: | April 25
|
| Distribution: | Rule 144A
|
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