By Ronda Fears
Nashville, Dec. 13 - Gilead Sciences Inc. sold $300 million of five-year convertible notes at par to yield 2.0% with a 25.74% initial conversion premium, via sole lead manager Goldman Sachs & Co.
The overnight deal sold at the aggressive end of guidance that put the yield at 2.0% to 2.5% and premium between 20% and 25%.
The company, which specializes in HIV and other anti-viral drugs, plans to use proceeds to augment cash reserves in anticipation of the merger with Triangle Pharmaceuticals Inc. and general corporate purposes, including potential future product or company acquisitions, capital expenditures and working capital.
Terms of the new deal are:
| Issuer: | Gilead Sciences Inc.
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| Amount: | $300 million
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| Greenshoe: | $45 million
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| Lead manager: | Goldman Sachs
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| Maturity date: | Dec. 15, 2007
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| Coupon: | 2.0%
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| Issue price: | Par
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| Yield: | | 2.0%
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| Conversion premium: | 25.74%
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| Conversion price: | $47.00
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| Conversion ratio: | 21.276
|
| Call: | Non-callable for 1.5 years, then with 150% hurdle and make-whole provision for 1.5 years
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| Settlement date: | Dec. 18
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