New Issue: WebMD $300 million convertibles at 3.25% yield, up 17.7%

By Ronda Fears

Nashville, Tenn., March 25 - WebMD Corp. sold $300 million of five-year convertible subordinated notes in a quick-sale Rule 144A deal on Monday, finalizing terms after the close. The issue sold at par to yield 3.25% with a 17.7% initial conversion premium over the closing stock price Monday, via lead manager UBS Warburg.

Elmwood, N.J-based WebMD, an Internet healthcare and information provider, said it plans to use proceeds for general corporate purposes, including acquisitions and repurchases of its common stock and working capital.

Terms of the new deal are:

Issuer: WebMD Corp.

Amount: $300 million

Greenshoe: $45 million

Lead Manager: UBS Warburg

Maturity Date: April 1, 2007

Coupon: 3.25%

Issue Price: par

Yield: 3.25%

Conversion Premium: 17.7%

Conversion Price: $9.263

Conversion Ratio: 10.7956

Call: NA

Settlement Date: April 1

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