By Evan Weinberger
New York, Feb. 13 - Vertex Pharmaceuticals Inc. priced $250 million in 4.75% convertible senior subordinated notes due Feb. 15, 2013 with a 35% initial conversion premium on Tuesday after market close.
The deal came in at the rich end of coupon talk, which had been 4.75% to 5.25%, and beyond the rich end of initial conversion premium talk, which had been 27.5% to 32.5%.
Merrill Lynch is the bookrunner of the Securities and Exchange Commission registered transaction.
There is a $37.5 million over-allotment option.
The settlement date is expected to be Feb. 19.
The conversion price is $23.14 and the conversion ratio is 43.2171, with a conversion ratio cap of 58.3430.
The convertibles are callable beginning Feb. 15, 2010. There are no puts.
The convertibles carry fundamental change protection and a make-whole premium.
Vertex also sold 6 million shares at $17.14 each, in line with the stock closing price. The stock sale was a greenshoe for 900,000 shares.
Vertex is a Cambridge, Mass.-based drug maker. The company plans to use the proceeds for general corporate purposes, which include the marketing and development of its drug telaprevir and other purposes.
Issuer: Vertex Pharmaceuticals Inc.
Issue: Convertible senior subordinated notes
Amount: $250 million
Greenshoe: $37.5 million
Maturity: Feb. 15, 2013
Coupon: 4.75%
Price: Par
Yield: 4.75%
Conversion premium: 35%
Conversion price: $23.14
Conversion ratio: 43.2171
Call: Beginning Feb. 15, 2010 at 102.85
| Put: | No
|
| Bookrunner: | Merrill Lynch
|
| Distribution: | SEC-registered
|
| Pricing date: | Feb. 12
|
| Settlement date: | Feb. 19
|
| Talk: | 4.75%-5.25% coupon, 27.5%-32.5% initial conversion premium
|
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