Medarex $100 million convertible talked to yield 3.75-4.25%, up 27.5-32.5%

By Ronda Fears

Nashville, July 17 - Medarex Inc. launched $100 million of seven-year convertible notes early Thursday for pricing after the close with guidance for a 3.75% to 4.25% coupon and 27.5% to 32.5% initial conversion premium.

Goldman Sachs & Co. is bookrunning lead manager for the Rule 144A deal.

The senior notes will be non-callable for three years with a 150% hurdle and a make-whole provision.

Coupon payments for the first three years will be collateralized with Treasury strips.

Holders also will have full dividend protection in the way of a conversion ratio adjustment.

There is a $25 million greenshoe available.

Medarex said proceeds would be used for general corporate purposes. The company also said it may use proceeds to repay debt and acquisitions, but notes it does not have any current plans to do so.

Medarex shares closed down $1.67, or 23.76%, to $5.36. The 4.5% convertible due 2006, a roughly $100 million issue, was quoted down 1.5 points to 83.625 bid, 85.625 offered.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.