Isis Pharmaceuticals revises talk on $175 million seven-year convertibles to 2.75%, up 32.5%

By Rebecca Melvin

New York, Aug. 7 - Isis Pharmaceuticals Inc. tightened talk on its planned $175 million of seven-year convertible notes to a 2.75% coupon and 32.5% initial conversion premium, according to a syndicate source.

The pricing is more aggressive than the original 3% to 3.5% coupon range and 27.5% to 32.5% premium range.

The Rule 144A deal is being sold via bookrunners Goldman Sachs & Co. and J.P. Morgan Securities LLC, and final terms were seen being fixed after the market close Tuesday.

As previously reported, there is a $26.25 million over-allotment option. The notes are non-callable for four years and then provisionally callable subject to a 130% price hurdle. There are no puts, but the paper has takeover and dividend protection.

Proceeds will be used to repay the company's 2.625% convertibles due 2027.

Isis is a Carlsbad, Calif.-based drug maker.

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