By Rebecca Melvin
New York, March 9 - WebMD Corp. priced an upsized $350 million of five-year convertible senior notes before the market open Wednesday at 98.25, a discount to par, to yield 2.51% with an initial conversion premium of 28%, according to a syndicate source.
The Rule 144A offering, which was initially expected to be $300 million in size, came at the talked price point and was sold via Citigroup Global Markets Inc. as the bookrunner.
There is a $50 million greenshoe.
The notes are non-callable with no puts except a change-of-control put at 100% plus interest. The notes are convertible into shares at a rate of 13.5704 shares per $1,000 bond.
About $50 million of the proceeds will be used to repurchase common stock at $57.57 per share, with the remainder earmarked for general corporate purposes, including acquisitions, repurchases of its common stock and working capital.
WebMD priced a similarly structured convertible in early January. That paper was $350 million of 2.5% seven-year convertibles that priced at 99 with an initial conversion premium of 27%.
Elmwood Park, N.J.-based WebMD is a provider of health information services.
| Issuer: | WebMD Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $350 million, upsized from $300 million
|
| Greenshoe: | $50 million
|
| Maturity: | March 31, 2016
|
| Bookrunner: | Citigroup Global Markets Inc.
|
| Coupon: | 2.25%
|
| Price: | 98.75, discount to par
|
| Yield: | 2.28% current, 2.51% yield to maturity
|
| Conversion premium: | 28%
|
| Conversion price: | $73.69
|
| Conversion ratio: | 13.5704 shares
|
| Call protection: | Non-callable for life
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Price talk: | 2.25%, up 28%
|
| Pricing date: | March 9
|
| Settlement date: | March 14
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: WBMD
|
| Stock reference price: | $57.57
|
| Market capitalization: | $3.35 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
