Protalix privately exchanges some 7.5% convertibles to extend maturity

Chicago, Aug. 13 – Protalix BioTherapeutics, Inc. privately exchanged $54.65 million of its existing 7.5% senior secured convertible notes due 2021 for new bonds with an extended maturity date and cash, according to a press release on Friday.

The company has issued to existing holders $28.75 million of new bonds with the same coupon and a 2024 maturity date, and also $25.9 million of cash and unpaid interest through the closing date.

Closing is expected for as soon as practicable.

After the exchange, there will be $3.27 million of the old notes due 2021 outstanding.

Participating noteholders in the exchange included funds managed by Highbridge Capital Management, LLC, UBS O'Connor LLC, Citigroup Global Markets, Whitebox Advisors, and Tulip Capital.

The new notes will be secured by perfected liens on all of the material assets of the company and its subsidiaries, like the existing notes.

Holders may put the notes on a fundamental change.

The notes are convertible at any time.

The new notes, upon conversion, will either be settled in cash or a combination of shares or cash, at the issuer’s option. Protalix will need stockholder approval, though, to issue additional shares of the common stock.

The initial conversion rate on the new notes will be 32.5%, based on the trading price at the market close on Aug. 13.

Protalix is a Carmiel, Israel-based pharmaceutical company.

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