Mylan prices $993.6M offer of notes

US generics drugmaker Mylan Laboratories has priced its concurrent public offerings for a total gross proceeds of $993.6 million (or $1.1 billion assuming the full exercise of underwriters' over-allotments). The offerings consist of $550.0 million aggregate principal amount of senior convertible notes due 2012 and 22.75 million shares of common stock. Mylan has granted the underwriters an option to buy up to an additional $50.0 million aggregate principal amount of notes and up to 3,412,500 shares of common stock, in each case, to cover over-allotments. The shareholders initially anticipated to sell shares of Mylan common stock in the offering have elected not to participate at this time.

The notes are being offered to the public at par and will accrue interest at 1.25% per annum, payable semi-annually in arrears. They will be convertible by holders at an initial conversion rate of 44.5931 shares of common stock per $1,000 principal amount of notes (subject to adjustment in certain circumstances), which represents an initial conversion price of around $22.43 a share. The common stock was priced at $19.50 per share.

Mylan intends to use the net proceeds of the offerings for general corporate purposes, including the expansion of its global operations. It says it is continually evaluating, and may pursue, various acquisitions, licensing and other strategic opportunities, including those that may be material to its results of operations and financial position.