CV Therapeutics greenshoe exercised, raising convertibles to $150 million

Pittsburgh, June 8 - CV Therapeutics Inc. said the underwriters of its recent offering of 2.75% senior subordinated convertible notes due 2012 have exercised their over-allotment option in full, raising the size of the deal to $150 million.

The Palo Alto, Calif.-based biotech concern, which develops drugs and treatments for cardiovascular diseases, originally priced $125 million of the securities after the close on May 12 to yield 2.75% with a 27.5% initial conversion premium.

Merrill Lynch & Co. ran the books for the Rule 144A deal.

CV Therapeutics will use the proceeds to repurchase additional convertibles, including subordinated debt, to fund an escrow account to provide security for the first six scheduled interest payments on the notes and for general corporate purposes.

CV Therapeutics said it has reached agreements with a limited number of holders of its outstanding 4.75% convertible subordinated notes due 2007 to buy back a further $15 million principal amount of the notes. The buybacks bring the total of the 4.75% convertible repurchased to $116.6 million.

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