Vivus plans $200 million offering of seven-year convertible notes

By Rebecca Melvin

New York, May 15 - Vivus Inc. launched early Wednesday an offering of $200 million of seven-year convertible senior notes under Rule 144A for which proceeds will be used for commercialization of products and development of its product candidates and for general corporate purposes, according to a news release.

A portion of the proceeds will also be used to pay the cost of a capped call transaction with affiliates of one of the initial purchasers of the notes.

Price talk was said to be for a yield of 4.25% with an initial conversion premium of 17.5%, according to market sources.

There is an over-allotment option for up to an additional $30 million of notes.

The notes are non-callable with no puts.

Mountain View, Calif.-based Vivus is a pharmaceutical company focused on treatments for obesity and sexual dysfunction.

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