Mylan Sells Debt, Stock

The company raises nearly $1 billion.
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Mylan Laboratories

(MYL) - Get Report

priced two securities offerings worth nearly $1 billion that could help it expand through product licensing, acquisitions or other means.

Mylan, which has a market capitalization of $4.4 billion, expects gross proceeds of $994 million from two separate offerings -- $550 million in senior convertible notes due in 2012 and the rest from 22.75 million common shares.

If investor demand is high, underwriters can buy an extra $50 million in notes and another 3.4 million shares, pushing the total gross proceeds to $1.1 billion.

Like many of its peers, Mylan is pursuing an expansion strategy as the generic-drug industry continues to consolidate both in the U.S. and abroad. In January, Mylan completed its $736 million purchase of 71.5% of the Indian generic-drug company

Matrix

. Mylan financed the deal with cash on hand and from a revolving credit facility.

The latest financing plan, which was announced Feb. 20, is expected to close March 7. Originally, Mylan planned to issue $400 million in convertible notes and 21.5 million shares. Of those shares, Mylan had expected 2.75 million to be sold by certain shareholders, but the company said Friday that they won't participate "at this time."

Mylan said it would use the money "for general corporate purposes, including the expansion of its global operations." But the company also said it is continually evaluating, and may pursue, "various acquisitions, licensing and other strategic opportunities."