MedImmune prices $1B convertible notes

USA-based MedImmune has announced the pricing of $500.0 million principal amount of convertible senior notes due 2011 and $500.0 million due 2013, through offerings to qualified institutional buyers. To cover over-allotments, the Gaithersberg, Maryland-headquartered antibody specialist has granted initial purchasers an option to buy up to an additional $75.0 million aggregate principal amount of 2011 notes and $75.0 million 2013 notes.

MedImmune expects to use approximately $500.0 million of the proceeds to fund the repurchase of the 1% convertible senior notes, adding that $150.0 million of the net proceds will be used to purchase shares of its common stock in privately-negotiated transactions. Remaining proceeds will be added to the firm's working capital and used for general corporate purposes, takeovers and buyback of shares.