By Rebecca Melvin
New York, Nov. 21 - WebMD Health Corp. priced $300 million of 1.5% seven-year convertible notes ahead of the market open on Thursday at a 97.5 discount to par and with an initial conversion premium of 36%, according to a syndicate source.
Pricing of the Rule 144A deal came at the talked, fixed price points when the overnight deal was launched late Thursday.
There is an over-allotment option for up to an additional $50 million of notes.
Citigroup Global Markets Inc. was bookrunner for the offering, and there were no co-managers.
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. There are no puts and no contingent interest or contingent conversion.
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.
| Issuer: | WebMD Health Corp.
|
| Issue: | Convertible notes
|
| Amount: | $300 million
|
| Greenshoe: | $50 million
|
| Maturity: | Dec. 1, 2020
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Coupon: | 1.5%
|
| Price: | 97.5, discount to par
|
| Conversion premium: | 36%
|
| Conversion price: | $52.81
|
| Conversion ratio: | 18.9362 shares
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Contingent conversion: | No
|
| Contingent interest: | No
|
| Price talk: | 1.5%, up 36% fixed
|
| Pricing date: | Nov. 21
|
| Settlement date: | Nov. 26
|
| Stock symbol: | Nasdaq: WBMD
|
| Stock reference price: | $38.83 at close Nov. 20
|
| Distribution: | Rule 144A
|
| Market capitalization: | $1.68 billion
|
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