Aegerion Pharmaceuticals offers $250 million five-year convertibles to yield 2%-2.5%, up 30%-35%

By Rebecca Melvin

New York, Aug. 11 – Aegerion Pharmaceuticals Inc. launched an offering of $250 million of five-year convertible senior notes early Monday that it planned to price after the market close. The notes are talked at a 2% to 2.5% coupon and a 30% to 35% initial conversion premium, according to a market source.

The Rule 144A offering has a $37.5 million greenshoe.

Bookrunners are Jefferies & Co. and J.P. Morgan Securities LLC.

The notes are non-callable and will be settled in shares. They have dividend and takeover protection.

In connection with the offering, Aegerion plans to enter into privately negotiated convertible note hedge and warrant transactions with one or more of the initial purchasers of the notes.

Proceeds will be used for working capital and other general corporate purposes, including funding possible acquisitions or investments, and to repurchase up to $35 million of outstanding common stock from certain purchasers of the notes.

Cambridge, Mass.-based Aegerion is a biopharmaceutical company that develops therapies for rare diseases.

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