West Pharmaceutical to price $150 million 40-year convertibles, talked at 3.5%-4%, up 30%-35%

By Kenneth Lim

Boston, March 8 - West Pharmaceutical Services Inc. planned to price $150 million of 40-year convertible junior subordinated debentures on Thursday after the market closed, talked at a coupon of 3.5% to 4% and an initial conversion premium of 30% to 35%.

The convertibles were offered at par.

There is an over-allotment option for a further $22.5 million.

UBS Investment Bank is the bookrunner of the registered off-the-shelf offering.

The convertibles are non-callable but may be converted at West Pharmaceutical's option after the fifth year subject to a hurdle at 150% of the conversion price. The convertibles may not be put.

Interest payments may be deferred for periods of up to 10 straight years.

There will be dividend protection for quarterly cash payouts above 13 cents per common share. There will be a change-of-control conversion right and a make-whole adjustment.

West Pharmaceutical, a Lionville, Pa.-based maker of closure systems and syringe components for use with injectable drugs, said the proceeds of the deal will be used for general purposes.

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