Mylan’s $574 million notes convertible after reaching 130% hurdle

By Jennifer Chiou

New York, Nov. 5 – Mylan Inc. announced that its $574 million aggregate principal amount of cash convertible notes due 2015 are convertible because the closing price of its common stock was more than 130% of the conversion reference price for least 20 trading days in the period of 30 consecutive trading days ended on Sept. 30.

According to a 10-Q filing with the Securities and Exchange Commission, the applicable conversion reference price is $13.32. The company’s shares closed at $53.47(Nasdaq: MYL) on Wednesday.

Mylan stated that although de minimis conversions were requested, the company’s experience is that convertible notes are not normally converted by investors until close to their maturity date.

The company noted that it plans to draw on its revolving credit facility to fund any principal payments.

Mylan is a Canonsburg, Pa.-based pharmaceutical company.

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