By Rebecca Melvin
New York, May 26 – WebMD Health Corp. priced $300 million of seven-year convertible notes ahead of the market open on Thursday to yield 2.625% and with an initial conversion premium of 30%, according to a release.
Pricing of the Rule 144A deal came at the cheap end of talked terms for a 2.125% to 2.625% coupon and a 30% to 35% premium.
Mizuho Securities USA Inc. was the bookrunner for the deal that came on an overnight basis. There is an over-allotment option for up to an additional $50 million of notes.
The notes are non-callable and will mature June 15, 2023. They have dividend and takeover protection.
Proceeds from the sale will be used for general corporate purposes, which may include acquisitions, repurchases of common shares, repurchases of outstanding convertibles and working capital.
Elmwood Park, N.J.-based WebMD is a provider of health information services.
| Issuer: | WebMD Health Corp.
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| Issue: | Convertible notes
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| Amount: | $300 million
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| Greenshoe: | $50 million
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| Maturity: | June 15, 2023
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| Bookrunner: | Mizuho Securities USA Inc.
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| Coupon: | 2.625%
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| Price: | Par
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| Yield: | 2.625%
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| Conversion premium: | 30%
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| Conversion price: | $87.07
|
| Conversion ratio: 11.4845 shares
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| Calls: | Non-callable
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| Puts: | No puts
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| Takeover protection: | Yes
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| Dividend protection: | Yes
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| Price talk: | 2.125%-2.625%, up 30%-35%
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| Pricing date: | May 26
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| Settlement date: | June 1
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| Stock symbol: | Nasdaq: WBMD
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| Stock reference price: | $66.98 at close May 25
|
| Distribution: | Rule 144A
|
| Market capitalization: | $2.34 billion
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