PDL BioPharma greenshoe lifts 3.75% convertibles to $155.25 million

By Melissa Kory

Cleveland, May 16 - PDL BioPharma, Inc. said that underwriters exercised their $20.25 million over-allotment option, lifting the offering of 3.75% convertible senior notes due 2015 to $155.25 million.

DL BioPharma priced $135 million of the four-year convertible notes after market close on May 10 at par to yield 3.75% with an initial conversion premium of 27.5%.

The notes are non-callable for life with no puts. There is contingent conversion subject to a 130% price hurdle. The notes have net share settlement and dividend and takeover protection.

The notes were sold via Merrill Lynch, Pierce, Fenner & Smith Inc. as the bookrunner, with RBC Capital Markets LLC and JMP Securities as the co-managers.

Proceeds of the convertible offering will be used to pay the cost of the note hedge transactions and to repurchase the company's $133.5 million of 2% convertible senior notes due February 2012.

PDL is a Wilmington, N.C., pharmaceutical company.

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