Conceptus to price $75 million 20-year convertibles on Tuesday, talked at 2.25%-2.75%, up 25%-30%

By Kenneth Lim

Boston, Feb. 5 - Conceptus Inc. plans to price $75 million of 20-year convertible senior notes on Tuesday after the market closes, talked at a coupon of 2.25% to 2.75% and an initial conversion premium of 25% to 30%.

The convertibles will be offered at par.

There is an over-allotment option for a further $11.25 million.

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

The notes will be non-callable for the first five years and may be put in years five, 10 and 15.

The notes will have a contingent conversion trigger at 130% of the conversion price.

There will be dividend protection and takeover protection in the form of a change-of-control put with a make-whole premium.

The notes will have net-share settlement.

Conceptus, a Mountain View, Calif.-based maker of birth control devices, said it will use the proceeds of the deal for general purposes and to fund convertible note hedge and warrant transactions.

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