WebMD $300 million convertible yields 1.75%, up 35%

By Sara Rosenberg

New York, June 19 - WebMD Corp. priced $300 million convertible subordinated notes due 2023 at par to yield 1.75% with an initial conversion premium of 35%.

The convertible was offered to investors at 98, according to market sources.

The conversion price is $15.39.

Bank of America is leading the Rule 144A deal, which priced after market close on Thursday.

There is a $50 million greenshoe.

The notes are non-callable for five years then there is a soft call for two years with a 125% hurdle and a coupon make whole. There are puts in years seven, 10 and 15.

There is a contingent conversion of 120% and a contingent payment trigger of 120%.

Proceeds will be used by the Elmwood Park, N.J. provider of connectivity and services to the healthcare industry for general corporate purposes, which may include acquisitions, repurchases of its common stock and for working capital.

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