Guilford Pharmaceuticals $50 million convertibles talked to yield 5.0-5.5%, up 28-32%

By Ronda Fears

Nashville, June 10 - Guilford Pharmaceuticals Inc. launched $50 million of five-year convertible subordinated notes talked to yield 5.0% to 5.5% with a 28% to 32% initial conversion premium, for pricing after Wednesday's close.

Citigroup is lead manager of the Rule 144A deal.

The issue is being sold on swap, as Guilford said it would use up to $10 million of proceeds to buy shares from short sellers participating in the convertible.

Remaining proceeds will be used for general corporate purposes, including working capital and potential acquisitions.

There is a $7.5 million greenshoe available.

Guilford shares closed up 6c, or 1.09%, to $5.58.

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