Sequenom to price $100 million five-year convertibles at 4.75%-5.25%, up 25%-30%

By Rebecca Melvin

New York, Sept. 10 - Sequenom Inc. plans to price $100 million of five-year convertible bonds after the market close on Tuesday that were talked to yield 4.75% to 5.25% and with an initial conversion premium of 25% to 30%, according to market sources.

There is a $20 million greenshoe for the Rule 144A deal, which is being priced via bookrunners J.P. Morgan Securities LLC and Jefferies & Co.

Proceeds of the offering will be used to fund the commercialization of a laboratory-developed test, as well as for other general corporate purposes, including research and development, capital expenditures, working capital and general administrative expenses.

The notes are non-callable for three years and then provisionally callable at a price hurdle of 140%. There are no puts. There is also takeover and dividend protection.

San Diego-based Sequenom provides genetic analysis products used in biomedical research, molecular medicine and agricultural applications.

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