ViroPharma completes $250M offering

US firm ViroPharma has completed its offering of $250.0 million aggregate principal amount of convertible senior notes due March 2017, pursuant to a registration statement filed last week with the Securities and Exchange Commission. This amount includes the exercise of the option by the underwriters to purchase an additional $25.0 million of notes from ViroPharma.

The notes will pay interest semi-annually at a rate of 2.0% per annum. They will be convertible, in certain circumstances, at an initial rate of 52.9998 shares per $1,000 principal amount, which represents an initial conversion price of approximately $18.87 a share, and a 32.5% conversion premium based on the last reported sale price of $14.24 of ViroPharma's common stock on March 20.

The net proceeds of $241.8 million after deducting estimated discounts, commissions and expenses will be used to fund general corporate purposes including strategic investments or acquisitions of products, technologies or complementary businesses. No commitments or agreements have currently been made for any specific acquisitions. ViroPharma said it has applied $23.3 million of the net proceeds towards the cost of hedge transactions, including a purchased call option and the issuance of a warrant in connection with the offering.