By Rebecca Melvin
New York, June 5 - Medicines Co. priced an upsized $225 million of five-year convertible senior notes after the market close on Tuesday to yield 1.375% with an initial conversion price of 22.5%, according to a syndicate source.
The Rule 144A deal was initially talked at $200 million in size.
Pricing came at the midpoint of talk, which was for a coupon of 1.125% to 1.625% and a 20% to 25% initial conversion premium.
Further details were unavailable at press time.
Joint bookrunners were J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Citigroup Global Markets Inc., with Leerink Swann as a co-manager.
The notes, which were initially set to have a $30 million greenshoe, are non-callable and will be settled upon conversion in cash up to par and in stock for any additional value. There is standard dividend and takeover protection.
Proceeds will be used to repurchase up to $50 million of common shares in privately negotiated transactions concurrently with the pricing of the convertibles and from time to time following the offering.
The company also plans to use proceeds to pay for the net cost of bond hedge and warrant transactions and for general corporate purposes.
Parsippany, N.J.-based Medicines develops products that improve specialized care.
| Issuer: | Medicines Co.
|
| Issue: | Convertible senior notes
|
| Amount: | $225 million, upsized from $200 million
|
| Greenshoe: | Initially $30 million
|
| Maturity: | 2017
|
| Bookrunners: | J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Citigroup Global Markets Inc.
|
| Co-manager: | Leerink Swann
|
| Coupon: | 1.375%
|
| Price: | Par
|
| Yield: | 1.375%
|
| Conversion premium: | 22.5%
|
| Call: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Price talk: | 1.125%-1.625%, up 20%-25%
|
| Call spread: | Yes
|
| Pricing date: | June 5, after the close
|
| Distribution: | Rule 144A
|
| Stock reference price: | $22.80 at close June 5
|
| Stock symbol: | Nasdaq: MDCO
|
| Market capitalization: | $1.23 billion
|
© 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.
