ViroPharma prices $225M of notes

Pennsylvania, USA-based ViroPharma has announced the pricing of a $225.0 million aggregate principal amount of convertible senior notes due March 2017, pursuant to a registration statement filed with the Securities and Exchange Commission March 20. In addition, the underwriters have been granted an option to buy up to an additional $25.0 million aggregate principal amount of notes from the company.

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

ViroPharma estimates the net proceeds from this offering will be approximately $217.6 million after deducting estimated discounts, commissions and expenses. They will be used to fund general corporate purposes including strategic investments or acquisitions of products, technologies or complementary businesses.