Millennium greenshoe exercised in full, upping convertibles offer to $250 million

By Jennifer Chiou

New York, Nov. 15 - Millennium Pharmaceuticals Inc. said its $25 million over-allotment option was fully exercised, augmenting its issue of 2.25% convertible senior notes due Nov. 15, 2011 to $250 million.

After the close on Nov. 9, the Cambridge, Mass.-based drug maker priced an upsized $225 million of the five-year convertibles with an initial conversion premium of 37.5%.

The notes have an initial conversion rate of 64.6465 shares per $1,000 principal amount of notes or $15.47 per share.

The deal amount was originally $200 million and the over-allotment option was reduced to $25 million from $30 million.

Morgan Stanley and JP Morgan were the bookrunners of the registered off-the-shelf offering.

The convertibles are non-callable, and there are no puts. There is a contingent conversion hurdle at 120% of the conversion price.

There is dividend and takeover protection and the deal has a net-share settlement feature.

Millennium, a Cambridge, Mass.-based drug maker, said the proceeds of the deal will be used to acquire other drugs and for general purposes.

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