WebMD Health to price $300 million seven-year convertible notes to yield 1.5%, up 36%

By Rebecca Melvin

New York, Nov. 20 - WebMD Health Corp. launched an overnight offering of $300 million of seven-year convertibles that was seen pricing Thursday ahead of the market open and talked at a fixed 1.5% coupon and 36% initial conversion premium, according to a syndicate source.

The Rule 144A deal has an over-allotment option for up to an additional $50 million of notes.

Citigroup Global Markets Inc. is the bookrunner.

The initial conversion price was set at $52.81 against the common stock's $38.83 close Wednesday.

The notes are non-callable and will mature Dec. 1, 2020.

Proceeds from the sale will be used for general corporate purposes, which may include acquisitions and the repurchase of common shares, and for working capital.

Elmwood Park, N.J.-based WebMD is a provider of health information services.

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