By Ronda Fears
Nashville, July 18 - Medarex Inc. sold $100 million of seven-year convertible notes at par to yield 4.25% with a 27.5% initial conversion premium, via lead manager Goldman Sachs.
The Rule 144A deal sold at the cheap end of guidance which put the yield at 3.75% to 4.25% with a 27.5% to 32.5% initial conversion premium.
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.
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.
Terms of the new deal are:
Issuer: Medarex Inc.
| Issue: | Convertible senior notes
|
| Lead manager: | | Goldman Sachs
|
| Amount | $100 million
|
| Greenshoe: | $25 million
|
| Maturity: | July 17, 2010
|
| Coupon: | 4.25%
|
| Price: | Par
|
| Yield: | 4.25%
|
| Conversion premium: | 27.5%
|
| Conversion price: | $6.719
|
| Conversion ratio: | 148.826
|
| Call: | Non-callable for 3 years with a 150% hurdle and make-whole provision for coupon payments
|
| Price talk: | 3.75-4.25%, up 27.5-32.5%
|
| Pricing date: | July 17, after the close
|
| Settlement: | July 23
|
| Distribution: | Rule 144A
|
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