By Ronda Fears
Nashville, Tenn., July 31 - Scios Inc. sold an upsized $150 million of seven-year convertible subordinated notes at par of 50 to yield 5.5% with a 23% initial conversion premium. The Rule 144A deal, via lead manager JPMorgan, sold at the cheap end of yield guidance and at the middle of premium talk.
It was upsized from $125 million.
Price talk had put the coupon between 5.0% and 5.5% yield with the initial conversion premium between 21% and 25%.
The first three years of interest payments are collateralized with U.S. Treasuries. The Sunnyvale, Calif.-based biopharmaceutical firm plans to use remaining proceeds to repay debt and general corporate purposes.
Terms of the new deal are:
| Issuer: | Scios Inc.
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| Amount: | $150 million
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| Greenshoe: | $25 million
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| Lead Manager: | JPMorgan
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| Co-managers: | Lehman Brothers and SG Cowen
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| Maturity Date: | Aug. 15, 2005
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| Coupon: | 5.5%
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| Issue Price: | par
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| Yield: | 5.5%
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| Conversion Premium: | 23%
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| Conversion Price: | $39.30
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| Conversion Ratio: | 25.445
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| Call: | non-callable for three years
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| Settlement Date: | Aug. 5
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