Vivus plans to sell $200 million seven-year convertibles to yield 4.25%-4.75%, up 15%-20%

By Rebecca Melvin

New York, May 15 - Vivus Inc. launched an offering of $200 million of seven-year convertible senior notes early Wednesday that was seen pricing after the market close and talked to yield 4.25% to 4.75% with an initial conversion premium of 15% to 20%, according to a syndicate source.

The Rule 144A deal was being sold via bookrunner Deutsche Bank Securities Inc.

Proceeds will be used to commercialize products and develop 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.

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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