New Issue: Cytyc $220 million convertible yields 2.25%, up 50%

Nashville, March 17 - Cytyc Corp. sold $220 million of 20-year convertible notes at par to yield 2.25% with a 50% initial conversion premium via bookrunner Morgan Stanley & Co.

The Rule 144A deal sold at the tight end of guidance for a 2.25% to 2.75% coupon and a 45% to 50% initial conversion premium.

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.

Terms of the deal are:

Issuer:	Cytyc Inc.
Issue:	Convertible senior notes
Bookrunners:	Morgan Stanley & Co.
Amount:	$220 million
Greenshoe:	$30 million
Maturity:	March 15, 2024
Coupon:	2.25%
Price:	Par
Yield:	2.25%
Conversion premium:	50%
Conversion price:	$29.67
Conversion ratio:	33.7041
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 45-50%
Pricing date:	March 16, after the close
Settlement date:	March 22
Distribution:	Rule 144A

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