TriZetto talks $200 million five-year convertibles at 1.125%-1.625%, up 15%-20%, to price Wednesday

By Kenneth Lim

Boston, April 10 - The TriZetto Group Inc. plans to price $200 million of five-year convertible senior notes on Wednesday after the market closes, talked at a coupon of 1.125% to 1.625% and an initial conversion premium of 15% to 20%.

The convertibles will be offered at par.

There is an over-allotment option for a further $30 million.

Deutsche Bank, Goldman Sachs and UBS Investment Bank are the bookrunners of the Rule 144A offering.

The convertibles will be non-callable and may not be put.

There will be a contingent conversion trigger at 130% of the conversion price.

There is a net-share settlement option.

The notes will have dividend and takeover protection.

TriZetto, a Newport Beach, Calif.-based provider of information technology solutions for the health care and insurance sectors, said it will use the proceeds of the deal to fund convertible note hedge and warrant transactions and to fund general purposes, which include debt repayment, stock buybacks or acquisitions.

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