WebMD offers $350 million seven-year convertibles at 2.5%, up 27%

By Rebecca Melvin

New York, Jan. 5 - WebMD Corp. planned to price $350 million of seven-year convertible senior notes before the market open Thursday that were talked to yield 2.5% with an initial conversion premium of 27%, according to a market source.

The Rule 144A offering was being sold via bookrunner Citigroup Global Markets Inc.

There is a $50 million greenshoe.

The notes, which will mature Jan. 31, 2018, have no calls or puts. They also have stock-only conversion settlement as well as dividend and takeover protection.

Up to $100 million of the proceeds will be used to repurchase common shares, with the remainder earmarked for general corporate purposes, including acquisitions, repurchases of its common stock and for working capital.

Elmwood Park, N.J.-based WebMD is a provider of health information services.

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