Vanda pulls $100 million convertibles offering

By Evan Weinberger

New York, Nov. 2 - Vanda Pharmaceuticals Inc. pulled its planned offering of $100 million in convertible senior notes maturing Nov. 15, 2014 on Friday morning due to market conditions - despite what it called strong demand.

"The decision not to pursue a convertible note offering at this time was due principally to prevailing market conditions resulting in note terms that were not acceptable to the company," a statement released by Vanda said.

The convertibles had been talked at a coupon of 3.875% to 4.375% and an initial conversion premium of 17.5% and 22.5%.

JPMorgan and Morgan Stanley were the joint bookrunners of the proposed Rule 144A transaction.

Vanda is a Rockville, Md.-based pharmaceuticals firm. The company planned to use the proceeds to market the schizophrenia treatment iloperidone, the development of other treatments, research and development activities and for working capital purposes.

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