WebMD cuts conversion prices for 2.25%, 2.5%, 1.5% convertibles

By Marisa Wong

Madison, Wis., Sept. 24 – WebMD Health Corp. adjusted the conversion rates for its 2.25% convertible notes due 2016, 2.5% convertible notes due 2018 and 1.5% convertible notes due 2020, according to an 8-K filing with the Securities and Exchange Commission.

The conversion rate of the 2.25% notes was adjusted to 13.9202 per $1,000 principal amount, which is equivalent to a conversion price of $71.84 per share, lowered from $72.00 per share. The $252,232,000 principal amount of 2.25% notes that are outstanding are convertible into a total of 3,511,120 shares of WebMD stock.

The conversion rate of the 2.5% notes was adjusted to 15.5118 shares per $1,000 principal amount. In other words, the conversion price was lowered to $64.47 per share from $64.61 per share. The $400 million principal amount of 2.5% notes that are outstanding are convertible into a total of 6,204,720 shares.

The conversion rate of the 1.5% notes was adjusted to 18.9795 shares per $1,000 principal amount, equivalent to a conversion price of $52.69 per share, decreased from $52.81 per share. The $300 million principal amount of 1.5% notes that are outstanding are convertible into a total of 5,693,850 shares.

The adjustments were triggered by a tender offer that expired on Sept. 9.

WebMD is a New York-based provider of online medical information.

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