By Ronda Fears
Memphis, March 21 - ViroPharma Inc. priced an upsized $225 million of 10-year convertible senior notes at the rich end of talk on Tuesday after the market closed at par with a coupon of 2% and an initial exchange premium of 32.5%.
The issue was boosted from $200 million, but the greenshoe was reduced to $25 million from $30 million.
Goldman Sachs was the bookrunner of the registered offering.
The exchangeables are non-callable and may not be put.
There is a contingent exchange trigger at 130% of the exchange price.
The exchangeables have dividend and takeover protection.
ViroPharma, an Exton, Pa., biotech concern, plans to use $20.9 million of the proceeds to fund convertible note hedge and warrant transactions and the remainder for general purposes such as strategic investments or acquisitions of products, technologies or complementary businesses although the company said it has no commitments or agreements for any specific acquisitions.
| Issuer: | ViroPharma Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Goldman Sachs
|
| Co-managers: | Credit Suisse and Piper Jaffray
|
| Amount: | $225 million, up from $200 million
|
| Greenshoe: | $25 million, cut from $30 million
|
| Maturity: | March 15, 2017
|
| Coupon: | 2%
|
| Price: | Par
|
| Yield: | 2%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $18.87
|
| Conversion ratio: | 52.9998
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Cash settlement: | Yes
|
| Call protection: | Non-callable
|
| Puts: | No
|
| Price talk: | 2.0%-2.5%, up 27.5%-32.5%
|
| Pricing date: | March 20, after the close
|
| Settlement date: | March 26
|
| Distribution: | Off the shelf
|
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