Sciele talks $250 million 20-year convertibles at 2.375%-2.875%, up 45%-50%, to price Tuesday

By Kenneth Lim

Boston, May 8 - Sciele Pharma Inc. planned to price $250 million of 20-year convertible senior notes on Tuesday after the market closed, talked at a coupon of 2.375% to 2.875% and an initial conversion premium of 45% to 50%.

The convertibles were offered at par.

UBS Investment Bank and Thomas Weisel Partners were the bookrunners of the registered offering.

The convertibles are non-callable for the first five years and may be put in years five, 10 and 15.

There is a contingent conversion trigger at 120% of the conversion price and contingent payment at 120% of the principal.

The convertibles are dividend and takeover protected.

Sciele, an Atlanta-based pharmaceutical company, said it will use the proceeds to redeem its $150 million outstanding 1.75% convertible senior subordinated notes due 2024 and for future acquisitions, capital expenditures and other general purposes.

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