By Ronda Fears
Nashville, July 10 - MedImmune Inc. sold $500 million of 20-year convertible notes at par to yield 1.0% with a 75% initial conversion premium.
The Rule 144A issue, via joint bookrunners Merrill Lynch & Co. and UBS Investment Bank, sold at the cheap end of price talk of a 0.5% to 1.0% yield with a 75% initial conversion premium.
Holders will have full dividend protection.
The issue was sold on swap, as MedImmune said it will use up to $150 million of proceeds to repurchase stock concurrently with the offering.
Remaining proceeds will be used for general corporate purposes, which may include the repurchase of stock from time to time, pre-funding of debt and possible acquisitions.
Terms of the new deal are:
Issuer: MedImmune Inc.
| Issue: | Convertible senior unsecured notes
|
| Joint lead managers: | Merrill Lynch and UBS Investment Bank
|
| Amount | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | July 15, 2023
|
| Coupon: | 0.5%
|
| Price: | Par
|
| Yield: | 0.5%
|
| Conversion premium: | 75%
|
| Conversion price: | $68.18
|
| Conversion ratio: | 14.6671
|
| Call: | Non-callable for 3 years
|
| Put: | In years 3, 5, 10 and 15
|
| Contingent conversion: | 120%
|
| Contingent payment: | 120%
|
| Price talk: | 0.5-1.0%, up 75%
|
| Pricing date: | July 9, after close
|
| Settlement: | July 15
|
| Distribution: | Rule 144A
|
|
|
|
|
© 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.
