By Stephanie N. Rotondo
Phoenix, Aug. 7 - Medidata Solutions Inc. sold $250 million five-year convertible senior notes at par on Wednesday to yield 1% with an initial conversion premium of 35%, according to a company press release.
The company announced the deal on Monday, proposing to sell $200 million of the notes. A trader said on Tuesday that the deal had been upsized.
There is a $37.5 million over-allotment option.
The notes can become convertible prior to Feb. 1, 2018 under certain circumstances. After that date, holders can convert the notes at any time.
The initial conversion rate is equivalent to 8.6143 shares of common stock per $1,000 of notes, which results in a conversion price of $116.09 per share.
Proceeds will be used for working capital and other general corporate purposes, including to fund possible acquisitions of, or investments in, complementary businesses, products, services, technologies and capital expenditures.
Medidata is a New York-based company that provides cloud-based clinical development solutions for life sciences organizations.
| Issuer: | Medidata Solutions Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $250 million, increased from $200 million
|
| Greenshoe: | $37.5 million
|
| Maturity: | Aug. 1, 2018
|
| Coupon: | 1%
|
| Price: | Par of $1,000
|
| Yield: | 1%
|
| Call options: | Prior to Feb. 1, 2018 under certain circumstances or at any time thereafter
|
| Conversion premium: | 35%
|
| Conversion price: | $116.09 per share
|
| Conversion ratio: | 8.6143 common shares per $1,000 of notes
|
| Pricing date: | Aug. 7
|
| Settlement date: | Aug. 12
|
| Stock symbol: | Nasdaq: MDSO
|
| Stock reference price: | $85.99 at close Aug. 6
|
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