Gilead greenshoe exercised, raising two convertibles to $650 million each

By Lisa Kerner

Erie, Pa., April 25 - Gilead Sciences, Inc. said the underwriters of its offering of convertibles notes exercised the greenshoe in full for each tranche, raising the total deal to $1.3 billion.

For its 0.625% convertible note offering, Gilead's underwriters exercised the $50 million over-allotment option in full, raising the size of the deal to $650 million.

Gilead originally fixed the terms of its $600 million offering of convertible notes due 2013 with a coupon of 0.625% and an initial conversion premium of 17% on April 19. Each bond may be converted to 13.1234 Gilead Sciences shares, or an initial conversion price of $76.20.

Additionally, the underwriters of Gilead's 0.500% convertible note offering exercised the $50 million over-allotment option in full, raising the size of the deal to $650 million.

Gilead originally fixed the terms of its $600 million offering of convertible notes due 2011 with a coupon of 0.500% and an initial conversion premium of 19% on April 19. Each bond may be converted to 12.9032 Gilead Sciences shares, or an initial conversion price of $77.50.

Joint bookrunners for the Rule 144A deal were Morgan Stanley, Merrill Lynch and Bank of America.

Gilead is a Foster City, Calif.-based biopharmaceutical company with operations in North America, Europe and Australia.

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