By Rebecca Melvin
Princeton, N.J., Dec. 6 - St. Jude Medical Inc. priced $600 million of 30-year convertibles at par to yield 2.8% with an initial conversion premium of 25%, according to a syndicate source.
The convertible senior debentures priced toward the cheap end of talk, which was 2.375% to 2.875%.
Sold via bookrunner Banc of America Securities LLC, the deal included an option to buy an additional $60 million of debentures.
The debentures are non-callable for one year and have puts in years one, three, five, 10, 15, 20 and 25. There is dividend and takeover protection.
The company intends to use proceeds to repay commercial paper issued to fund its previously announced acquisition of Advanced Neuromodulation Systems Inc.
St. Paul, Minn.-based St. Jude Medical is a medical device maker.
| Issuer: | St. Jude Medical Inc.
|
| Issue: | Convertible senior debentures
|
| Bookrunner: | Banc of America Securities LLC
|
| Amount: | $600 million
|
| Greenshoe: | $60 million
|
| Maturity: | Dec. 15, 2035
|
| Coupon: | 2.8%
|
| Price: | Par
|
| Yield: | 2.8%
|
| Conversion premium: | 25%
|
| Conversion price: | $64.51
|
| Conversion ratio: | 15.50
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Call: | Non-callable for one year
|
| Puts: | At year one, 3, 5, 10, 15, 20, 25
|
| Pricing date: | Dec. 6, after the close
|
| Settlement date: | Dec. 12
|
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