WebMD lowers conversion price of 2.625%, 2.5%, 1.5% convertibles

By Marisa Wong

Morgantown, W.Va., Jan. 4 – WebMD Health Corp. adjusted the conversion rates for its 2.625% convertible notes due 2023, 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 for the 2.625% notes due 2023 was adjusted to 11.5389 shares per $1,000 principal amount. With the adjustment to the conversion rate, the conversion price decreased to $86.66 per share from $87.07 per share. The $360 million principal amount currently outstanding is convertible into a total of 4,154,004 shares.

The conversion rate of the 2.5% notes due 2018 was adjusted to 15.5854 shares per $1,000 principal amount. With this adjustment, the conversion price decreased to $64.16 per share from $64.47 per share. The $400 million principal amount currently outstanding is convertible into a total of 6,234,160 shares.

The conversion rate of the 1.5% notes due 2020 was adjusted to 19.0695 shares per $1,000 principal amount. Equivalently, the conversion price decreased to $52.44 per share from $52.69 per share. The $300 million principal amount currently outstanding is convertible into a total of 5,720,850 shares.

The company’s stock closed at $50.70 (Nasdaq: WBMD) on Wednesday.

The adjustments resulted from a tender offer of stock that expired on Dec. 15.

WebMD is a New York-based provider of health information services.

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