Convertible notes offering by deCODE

Iceland-based deCODE genetics says that it proposes to make an offering of 3.5% senior convertible notes due 2011. The size of the offering will be subject to market and other conditions and will be made by means of an offering memorandum to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.

The notes will be convertible into deCODE common stock at a price of $14 per share. They have the same interest rate and conversion price as the existing 3.5% notes due 2011 issued in April 2004 and will otherwise have substantially similar terms but will be a separate series, the company said.

deCODE expects to use the proceeds principally for advancing its drug and diagnostic discovery and development programs, as well as for general corporate purposes.