ST. PAUL, Minn.--(BUSINESS WIRE)--St. Jude Medical, Inc. (NYSE:STJ) announced today the pricing of $1.2 billion in aggregate principal amount of its Convertible Senior Debentures due December 2008 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The debentures will pay interest semi-annually at a rate of 1.22% per annum. The debentures are convertible in certain circumstances into cash up to the principal amount, based on a conversion rate of 19.2101 shares of common stock per $1,000 principal amount of the debentures. This represents an initial conversion price of approximately $52.06 per share, representing a 20% conversion premium based on the closing price of $43.38 per share of the Company’s common stock on April 19, 2007. Any conversion value above the principal amount will be convertible into cash, shares of common stock or a combination of cash and shares at the Company’s election. The initial purchaser exercised its option to purchase $200 million aggregate principal amount of debentures to cover over-allotments. The $1.2 billion of debentures includes the over-allotment option.
