New Issue: Tekelec $125 million convertibles yield 2.25%, up 55%

By Ronda Fears

Nashville, June 12 - Tekelec priced $125 million of five-year non-callable convertible senior subordinated notes at par to yield 2.25% with a 55% initial conversion premium in the Rule 144A market via lead manager Morgan Stanley.

The issue sold at the aggressive end of price talk which put the yield at 2.25% to 2.75% with a 50% to 55% initial conversion premium.

Tekelec said it would use proceeds to redeem its 3.25% convertible due 2004. The next call on the issue is in November at 96.67.

Terms of the deal are:

Issuer: Tekelec

Issue:	Convertible senior subordinated notes
Lead manager:	Morgan Stanley
Amount	$125 million
Greenshoe:	$25 million
Maturity:	June 15, 2008
Coupon:	2.25%
Price:	Par
Yield:	2.25%
Conversion premium:	55%
Price talk:	2.25-2.75%, up 50-55%
Conversion price:	$19.65
Conversion ratio:	50.8906
Pricing date:	June 11 after close
Settlement:	June 17
Distribution:	Rule 144A

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