Valeant greenshoe exercised, raising convertibles to $480 million

New York, Nov. 19 - Valeant Pharmaceuticals International said underwriters of its recent offering of convertibles in two tranches exercised both greenshoes in full, raising the total size of the deal to $480 million.

The Costa Mesa, Calif., specialty pharmaceutical company, previously known as ICN Pharmaceuticals, originally sold $200 million of tranche A 6.75-year convertible subordinated notes to yield 3% with a 40% initial conversion premium and $200 million of tranche B 10-year convertible subordinated notes to yield 4% with a 40% initial conversion premium after the market closed on Nov. 13. The greenshoe on each tranche was $40 million.

Joint bookrunners for the Rule 144A offering were Goldman Sachs & Co. and Banc of America Securities.

Valeant used part of the proceeds to enter into convertible note hedges and to buy written call options, with a $39.515 strike price, to limit the dilution impact of the convertible issue. Remaining proceeds will be used to retire a portion of the old ICN 6.5% convertible subordinated notes due 2008 and for general corporate purposes, including potential acquisitions.

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