By Kenneth Lim
Boston, Jan. 18 - Isis Pharmaceuticals Inc. on Wednesday priced $125 million of 20-year convertible subordinated notes within talk, at a coupon of 2.625% and an initial conversion premium of 30%.
The notes were offered at par. Price talk was for a coupon of 2.5% to 3% and an initial conversion premium of 27.5% to 32.5%.
There is an over-allotment option for a further $37.5 million.
Lehman Brothers was the bookrunner of the Rule 144A offering.
The notes are non-callable for the first five years, with puts in years seven, 10 and 15.
There is contingent conversion hurdle at 120% of the conversion price.
The notes have dividend and takeover protection.
Isis, a Carlsbad, Calif.-based drug maker whose products cardiovascular, metabolic, inflammatory and ocular diseases and cancer, said it will use the proceeds of the deal to buy back its 5.5% convertible subordinated notes due 2009, of which $125 million is outstanding, and for general purposes.
| Issuer: | Isis Pharmaceuticals Inc.
|
| Issue: | Convertible subordinated notes
|
| Bookrunner: | Lehman Brothers
|
| Amount: | $125 million
|
| Greenshoe: | $37.5 million
|
| Maturity: | Feb. 15, 2027
|
| Coupon: | 2.625%
|
| Price: | Par
|
| Yield: | 2.625%
|
| Conversion premium: | 30%
|
| Conversion price: | $14.63
|
| Conversion ratio: | 68.3761
|
| Contingent conversion: | 120%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before Feb. 15, 2012
|
| Puts: | Feb. 15, 2014; Feb. 15, 2017; Feb. 15, 2022
|
| Price talk: | 2.5%-3%, up 27.5%-32.5%
|
| Pricing date: | Jan. 17, after the close
|
| Settlement date: | Jan. 23
|
| Distribution: | Rule 144A
|
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