Cytyc $220 million convertible talked at 2.25-2.75%, up 45-50%

By Ronda Fears

Nashville, March 15 - Cytyc Corp. launched $220 million of 20-year convertible notes talked to yield 2.25% to 2.75% with a 45% to 50% initial conversion premium for pricing after Tuesday's close.

Morgan Stanley & Co. is bookrunner of the Rule 144A deal.

The senior notes will be non-callable for five years with puts in years five, 10 and 15.

There is a 120% contingent conversion trigger and a 120% contingent payment trigger.

A $30 million greenshoe is available.

Boxborough, Ma.-based Cytyc, which makes cervical cancer screening tests, said it would use proceeds to finance its $325 million cash purchase of Novacept, a Palo Alto, Calif.-based maker of medical devices to treat excessive menstrual bleeding.

Cytyc shares closed Monday off 67 cents, or 3.19%, to $20.33. In after-hours trading, the stock was down another 63 cents, or another 3.1%.

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