New Issue: PSS World Medical $125 million convertible yields 2.25%, up 45%

Nashville, March 3 - PSS World Medical Inc. sold $125 million of 20-year convertible notes at par to yield 2.25% with a 45% initial conversion premium via sole bookrunner Goldman Sachs & Co.

The Rule 144A deal priced at the aggressive end of guidance for a 2.25% to 2.75% coupon and 40% to 45% initial conversion premium.

The issue was sold on swap, with $35 million of proceeds earmarked to buy back stock. The Jacksonville, Fla.-based specialty marketer and distributor of medical products said $60 million of proceeds would be used to reduce its revolving credit facility and any remaining proceeds for general corporate purposes.

Terms of the deal are:

Issuer:	PSS World Medical Inc.
Issue:	Convertible senior notes
Bookrunners:	Goldman Sachs & Co.
Amount:	$125 million
Greenshoe:	$25 million
Maturity:	March 2024
Coupon:	2.25%
Price:	Par
Yield:	2.25%
Conversion premium:	45%
Conversion price:	$17.10
Conversion ratio:	58.4795
Contingent conversion:	120%
Contingent payment:	120%
Call:	Non-callable for 5 years
Put:	In years 5, 10 and 15
Price talk:	2.25-2.75%, up 40-45%
Pricing date:	March 2, after the close
Settlement date:	March 8
Distribution:	Rule 144A

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