Wyeth $850 million convertible floater talked at Libor minus 25-75 bps, up 55-60%

By Ronda Fears

Nashville, Dec. 9 - Major drug concern Wyeth launched $850 million of 20-year convertible floating-rate notes late Tuesday talked to yield Libor minus 25 to 75 basis points with a 55% to 60% initial conversion premium.

JPMorgan Securities and Citigroup Global Markets are joint bookrunners of the Rule 144A deal, which is slated to price after the close Wednesday.

The senior floating rate notes will be non-callable for 5.5 years, with puts in years 5.5, 10 and 15.

There is a 130% contingent conversion trigger.

There is a $170 million greenshoe available.

The Madison, N.J.-based pharmaceutical company said the convertible proceeds, together with available cash, would be used to fund a redemption of its $1 billion of 6.25% senior notes due 2006.

Also Tuesday, Wyeth announced that it intends to offer $2.5 billion of unsecured senior notes through a registered public offering under its existing shelf registration. Those proceeds are earmarked to fund an offer to purchase any and all of its $1 billion of 7.9% senior notes due 2005 as well as for other general corporate purposes and working capital.

Wyeth shares closed down 82 cents, or 2.05%, to $39.25.

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