LIONVILLE, Pa., March 9 /PRNewswire-FirstCall/ -- West Pharmaceutical Services, Inc. , a global manufacturer of closure systems and syringe components for use with injectable drugs, announced that it has priced its previously announced public offering of $150 million principal amount of Convertible Junior Subordinated Debentures due 2047. In addition, the Company has granted the underwriters a 30 day option to purchase up to an additional $22.5 million of notes to cover over-allotments.
The debentures will pay interest semiannually at a rate of 4% per year. The debentures will be convertible into shares of the Company's common stock at an initial conversion rate, subject to adjustment, of 17.8336 shares per $1,000 principal amount of debentures. This represents an initial conversion price of approximately $56.07, reflecting a 32.5% premium over yesterday's closing stock price of $42.32 per share. The debentures are convertible at any time prior to maturity. The Company may cause the debentures to be automatically converted into shares of the Company's common stock, at any time on or after March 20, 2012, if the closing price of the common stock exceeds 150% of the then prevailing conversion price of the debentures for 20 of the 30 trading days preceding a public announcement of the automatic conversion and certain other conditions are satisfied.
Net proceeds of the offering are expected to be used for general corporate purposes, which may include capital expenditures, working capital, possible acquisitions of other businesses, technologies or products, repaying debt, and potentially repurchasing our capital stock.
The company expects to close the sale of the debentures on March 14, 2007, subject to the satisfaction of customary closing conditions.
About the Offering
UBS Investment Bank is sole book running lead manager for the offering. Banc of America Securities LLC and Wachovia Securities are acting as co- managers for the offering.
The Company has filed a registration statement, including a prospectus and related prospectus supplement relating to this offering, with the Securities and Exchange Commission and these are available on the SEC's website at http://www.sec.gov. Before you invest, you should read the prospectus supplement, related prospectus and other documents the company has filed with the SEC for more complete information about the Company and this offering. Copies of the prospectus supplement and related prospectus may also be obtained from UBS Investment Bank, Attention: Prospectus Department, 299 Park Avenue, New York, New York, 10171, or by calling UBS Investment Bank at (888) 827-7275 or from the Company.
This press release does not constitute an offer to sell or solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About West Pharmaceutical Services, Inc.
West Pharmaceutical Services, Inc. is a global manufacturer of components and systems for injectable drug delivery, including stoppers and seals for vials, and closures and disposable components used in syringe, IV and blood collection systems. The Company also provides products with application to the personal care, food and beverage markets. Headquartered in Lionville, Pennsylvania, West Pharmaceutical Services supports its partners and customers from 50 locations throughout North America, South America, Europe, Mexico, Japan, Asia and Australia.
This press release contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among other things, the Company's expectations about the closing of the offering of the convertible junior subordinated debentures and the anticipated use of net proceeds from such offering. Forward-looking statements reflect the Company's current plans and expectations and are based on information currently available. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts: West Pharmaceutical Services, Inc. Michael A. Anderson Vice President and Treasurer (610) 594-3345 Investors and Financial Media: Financial Dynamics Julie Huang / Theresa Kelleher (212) 850-5600 wst@fd.com
West Pharmaceutical Services, Inc.CONTACT: Michael A. Anderson, Vice President and Treasurer of WestPharmaceutical Services, Inc., +1-610-594-3345; or Investors and FinancialMedia - Julie Huang, or Theresa Kelleher, both of Financial Dynamics,+1-212-850-5600, wst@fd.com
Web site: http://www.westpharma.com/
