Vertex greenshoe exercised, lifts 4.75% convertibles to $287.5 million

By Devika Patel

Knoxville, Tenn., Feb. 14 - The underwriter for Vertex Pharmaceuticals Inc.'s 4.75% convertible senior subordinated notes due Feb. 15, 2013 exercised its over-allotment option in full for $37.5 million, increasing the size of the issue to $287.5 million, the company said in a press release.

The conversion price is $23.14, and the conversion ratio is 43.2171, with a conversion ratio cap of 58.3430.

As previously reported, the Vertex sold the convertibles on Feb. 12 at par with an initial conversion premium of 35%.

Merrill Lynch is the bookrunner of the Securities and Exchange Commission-registered transaction.

The company plans to use the proceeds for general corporate purposes, which include the marketing and development of its drug telaprevir and for other purposes.

Vertex is a Cambridge, Mass.-based drug maker.

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