United Therapeutics prices $210M offering

Maryland, USA-based United Therapeutics Corp has announced the pricing of $210.0 million principal amount of convertible senior notes due 2011 in a private offering to qualified institutional buyers. Also, the firm said that the initial purchaser has exercised its option to buy a $40.0 million principal amount of additional notes to cover overallotments in full. United Therapeutics estimates that the net proceeds from this offering (including proceeds resulting from exercise of the initial purchaser's option) will be about $242.0 million, after deducting the initial purchaser's discounts and commissions and estimated expenses.

The notes will pay interest semi-annually at a rate of 0.50% a year.

United Therapeutics expects to use some $112.0 million of the net proceeds to repurchase, concurrently with the closing of the offering, outstanding shares of its common stock in privately-negotiated transactions. This stock repurchase will total around 1.8 million shares based on the closing price on October 24 of $62.17. An additional 2.2 million shares may be repurchased within the next two years under the company's existing stock repurchase program announced on October 23.