Enzon greenshoe exercised, lifting 4% convertibles issue to $275 million

By Jennifer Chiou

New York, June 1 - Enzon Pharmaceuticals, Inc. said underwriters exercised in full a $50 million greenshoe, augmenting its private placement of 4% convertible senior notes due 2013 to $275 million.

On May 17, Enzon priced an upsized $225 million offering of seven-year convertibles with an initial conversion premium of 25%.

The convertibles were offered at par and have an initial conversion price of $9.55 per share.

Goldman Sachs was the bookrunner of the Rule 144A deal.

The convertibles are non-callable for the first three years, after which they may be called only if Enzon stock exceeds 140% of the conversion price. There are no puts.

The convertibles have dividend protection and a change-of-control put with premium make-whole.

Enzon, a Bridgewater, N.J.-based biopharmaceutical company, will use the proceeds of the offering to buy back its $394 million of 4.5% convertible subordinated notes due 2008.

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