Mylan says holders may convert $575 million of convertibles due 2015

By Susanna Moon

Chicago, April 27 - Mylan Inc. said its stock price has triggered the convertibility of its $575 million principal amount of cash convertible notes due Sept. 15, 2015.

The notes are convertible because the company's stock closed above the 130% conversion price of $13.32 for at least 20 out of 30 consecutive trading days ending March 31, according to a 10-Q filing for the quarter ended March 31 with the Securities and Exchange Commission.

The company's shares (Nasdaq: MYL) closed at $22.13 on April 26.

The conversion rate is 75.0751 per $1,000 principal amount of bonds.

Mylan said it plans to draw down on its revolving credit facility to fund any principal payments. The facility expires in October 2013 and had available capacity of about $1.2 billion as of March 31.

The company said it is their experience convertible debentures are not normally converted until close to maturity but that they could be converted if, for example, a holder perceives the market for the debentures to be weaker than the market for the stock.

The issuer is a pharmaceutical company based in Pittsburgh.

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