Sepracor prices $500M note deal

SEPR raised $500 million through the sale of senior convertible subordinated notes due 2024. The notes bear 0% interest and convert into cash and, under certain conditions, SEPR stock at $67.20, which is a 30% premium to the company's Sept. 16 close of $51.69.

The deal, which was proposed on Thursday, has a $100 million overallotment. SEPR will use $99.9 million of the proceeds to repurchase stock. The company had about $536 million in cash as of June 30. Based on SEPR's Sept. 16 close, the company could buy about 1.9 million shares. ...