Medarex $125 million convertible talked at 2.25-2.75%, up 25-30%

By Ronda Fears

Nashville, April 26 - Medarex Inc. launched $125 million of seven-year convertible notes talked to yield 2.25% to 2.75% with a 25% to 30% initial conversion premium with proceeds earmarked to take out all or part of its 4.5% convertibles.

Goldman Sachs & Co. is sole bookrunner of the Rule 144A deal, which is slated to price after the close Tuesday.

The senior unsecured notes will be non-callable for five years.

Holders will have full dividend protection.

A $25 million greenshoe is available.

Proceeds will be used to redeem all or a portion of the Medarex 4.5% convertible notes due 2006, including accrued interest. There is $142 million outstanding on that issue, according to the Princeton, N.J., biotechnology firm.

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