WebMD greenshoe lifts 2.625% seven-year convertibles to $360 million

By Susanna Moon

Chicago, May 27 – WebMD Health Corp. said underwriters fully exercised the $60 million over-allotment option on its 2.625% seven-year convertible notes, bringing the total deal size to $360 million.

As announced May 26, WebMD priced $300 million of the convertibles ahead of the market open on Thursday with an initial conversion premium of 30%.

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, as reported.

Mizuho Securities USA Inc. was the bookrunner for the deal that came on an overnight basis.

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.

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