Nashville, Dec. 11 - Major drug concern Wyeth sold $850 million of 20-year convertible floaters at par to yield the six-month Libor minus 50 basis points with a 57.5% initial conversion premium via joint bookrunners JPMorgan Securities and Citigroup Global Markets.
There is a floor of 0% on the cash coupon.
The Rule 144A deal priced smack in the middle of price talk for six-month Libor minus 25 to 75 basis points, up 55% to 60%.
The Madison, N.J.-based pharmaceutical company said the convertible proceeds, together with available cash, would be used to fund a redemption of its $1 billion of 6.25% senior notes due 2006.
Also Tuesday, Wyeth announced that it intends to offer $2.5 billion of unsecured senior notes through a registered public offering under its existing shelf registration. Those proceeds are earmarked to fund an offer to purchase any and all of its $1 billion of 7.9% senior notes due 2005 as well as for other general corporate purposes and working capital.
Terms of the deal are:
| Issuer: | Wyeth
|
| Issue: | Convertible senior floating-rate notes
|
| Bookrunners: | JPMorgan Securities and Citigroup Global Markets
|
| Amount: | $850 million
|
| Greenshoe: | $170 million
|
| Maturity: | Jan. 15, 2024
|
| Coupon: | 6-month Libor minus 50 bps
|
| Price: | Par
|
| Yield: | 6-month Libor minus 50 bps
|
| Conversion premium: | 57.5%
|
| Conversion price: | $60.39
|
| Conversion ratio: | 16.559
|
| Contingent conversion: | 130%
|
| Call: | Non-callable for 5.5 years
|
| Put: | In years 5.5, 10 and 15
|
| Price talk: | Libor minus 25-75 bps, up 55- 60%
|
| Pricing date: | Dec. 10, after the close
|
| Settlement date: | Dec. 16
|
| Distribution: | Rule 144A
|
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