MedImmune Plans Debt Sale, Stock Buyback - TheStreet

MedImmune Plans Debt Sale, Stock Buyback

The company will issue $500 million of convertible notes.
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said after the close Wednesday that it expects to offer $500 million of convertible notes due 2023, and the biotech company also disclosed plans for a stock buyback.

The notes will be convertible into MedImmune common stock at a price to be determined. MedImmune plans to use up to $150 million of the proceeds from the sale of the notes toward the stock buyback, itself a $500 million authorization.

MedImmune said it will use the remainder of the proceeds for general corporate purposes, which could include stock repurchases, prefunding the retirement of existing debt obligations, and possible acquisitions or other external growth opportunities.

The notes will be issued in a private placement.

The board of directors authorized the stock buyback to take place over a two-year period. As of March 31, MedImmune had about 251.8 million shares outstanding.

In Instinet trading after the closing bell, MedImmune was losing 46 cents, or 1.2%, to $38.39.