Mylan stock price triggers conversion option on $575 million notes

By Susanna Moon

Chicago, July 27 - Mylan Inc. holders may convert the company's $575 million principal amount of cash convertible notes due 2015 at a rate of 75.0751 shares per $1,000 principal amount, according to a 10-Q filing with the Securities and Exchange Commission.

The notes are convertible because the company's closing price was more than 130% of the conversion price of $13.32 for at least 20 out of 30 consecutive trading days ended June 30.

The company's shares (Nasdaq: MYL) closed at $23.55 on July 26.

Mylan said that, in the company's experience, holders normally do not convert their notes until close to maturity, but could choose to convert them if the market for the notes is perceived to be weaker than the market for the stock.

Any funding for the conversions will come from drawdowns on the company's secured revolving credit facility due October 2013, with available capacity of about $694 million as of June 30.

Mylan is a Pittsburgh-based generic and specialty pharmaceutical company.

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