The Medicines Company Prices $150 Million of Convertible Notes

PARSIPPANY, N.J.--(BUSINESS WIRE)--The Medicines Company (NASDAQ:MDCO) (the “Company”) today announced that it has priced its private offering of $150 million in aggregate principal amount of its convertible senior notes due 2024. The notes will be sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The notes will be senior unsecured obligations of the Company and will mature on January 15, 2024, unless earlier converted or repurchased in accordance with their terms. The notes will bear interest at a rate of 3.50% per year, payable semi-annually. The notes will be convertible prior to October 15, 2023 only upon the occurrence of certain circumstances and will be convertible thereafter regardless of these circumstances, in either case, into cash, shares of the Company’s common stock or a combination thereof, at the Company’s option. The conversion rate for the notes will initially be 39.6920 shares of common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $25.19 per share of common stock. The initial conversion price of the notes represents a premium of approximately 27.5% to the $19.76 per share last reported sale price of the Company’s common stock on December 13, 2018. The Company has granted the initial purchaser the option to purchase up to an additional $22.5 million in aggregate principal amount of the notes. The sale of the notes is expected to close on or about December 18, 2018, subject to customary closing conditions.