Nashville, Feb. 11 - CuraGen Corp. sold an upsized $100 million of seven-year convertibles at par to yield 4.0% with a 37% initial conversion premium via sole bookrunner Bear Stearns & Co. Inc.
The Rule 144A deal, upped from $75 million, priced at the middle of yield talk of 3.75% to 4.25% and at the aggressive end of premium guidance of 33% to 37%.
The New Haven, Conn.-based biotech concern, which develops genomics-based pharmaceuticals, said proceeds would be used to repay existing debt, including the possibility of a portion of its 6% convertible subordinated debentures due 2007, depending on market conditions.
Proceeds may also be used for working capital, general corporate purposes and potential acquisitions.
Terms of the deal are:
| Issuer: | CuraGen Corp.
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| Issue: | Convertible subordinated notes
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| Bookrunner: | Bear Stearns & Co. Inc.
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| Amount: | $100 million, increased from $75 million
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| Greenshoe: | $20 million, increased from $15 million
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| Maturity: | Feb. 15, 2011
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| Coupon: | 4.0%
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| Price: | Par
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| Yield: | 4.0%
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| Conversion premium: | 37%
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| Conversion price: | $9.69
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| Conversion ratio: | 103.2429
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| Call: | Non-callable for 5 years
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| Price talk: | 3.75-4.25%, up 33-37%
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| Pricing date: | Feb. 10, after the close
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| Settlement date: | Feb. 17
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| Distribution: | Rule 144A
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