WebMD greenshoe exercised; 2.25% convertibles lifted to $400 million

By Devika Patel

Knoxville, Tenn., March 14 - Underwriters for WebMD Corp.'s 2.25% five-year convertible senior notes exercised their over-allotment option in full for $50 million more of the convertibles, increasing the size of the issue to $400 million, the company said in an 8-K filed Monday with the Securities and Exchange Commission.

The company sold the convertibles at par on March 9 in a Rule 144A offering via bookrunner Citigroup Global Markets Inc.

The convertibles have an initial conversion premium of 28% and an initial conversion price of $73.69, which equals a conversion ratio of 13.5704.

The notes, which will mature March 31, 2016, have no calls or puts.

Up to $50 million of the proceeds will be used to repurchase common stock with the remainder earmarked for general corporate purposes, including acquisitions, repurchases of its common stock and for working capital.

Elmwood Park, N.J.-based WebMD is a provider of health information services.

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