New Issue: Encysive sells upsized $115 million convertible at 2.5%, up 35%

Nashville, March 11 - Encysive Pharmaceuticals Inc. sold an upsized $115 million of seven-year convertible senior notes at par to yield 2.5% with a 35% initial conversion premium via joint bookrunners UBS Investment Bank and JPMorgan Securities.

The Rule 144A issue, upped from $100 million, was sold at the middle of coupon talk of 2.25% to 2.75% but at the aggressive end of premium guidance of 30% to 35%.

Houston-based Encysive said it intends to use proceeds to fund further clinical development, marketing and pre-launch activities related to the drug Thelin and for further research and development of other product candidates, as well as for general corporate purposes, including capital expenditures and working capital.

Issuer:	Encysive Pharmaceuticals Inc.
Issue:	Convertible senior notes
Bookrunners:	UBS Investment Bank and JPMorgan Securities
Amount:	$115 million, up from $100 million
Greenshoe:	$10 million
Maturity:	March 20, 2012
Coupon:	2.5%
Price:	Par
Yield:	2.5%
Conversion premium:	35%
Conversion price:	$13.95
Conversion ratio:	71.7077
Contingent conversion:	No
Contingent payment:	No
Dividend protection:	Yes
Takeover protection:	Yes
Call:	Non-callable for 5 years, then with 140% hurdle
Price talk:	2.25%-2.75%, up 30%-35%
Pricing date:	March 10, after market close
Settlement date:	March 16
Distribution:	Rule 144A

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