Millennium closes sale of $250M notes

USA-based Millennium Pharmaceuticals has closed the sale of $250.0 million aggregate principal amount of 2.25% convertible senior notes due November 15, 2011. This reflects the full exercise by the underwriters of their option to purchase $25.0 million aggregate principal amount to cover over-allotments, the firm noted.

The notes are convertible based on an initial conversion rate of 64.6465 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of around $15.47 per share of common stock. The notes bear interest at a rate of 2.25% per year.

Millennium says it expects to use the net proceeds primarily for potential license arrangements and acquisitions, and any balance for general corporate purposes.