Notes bear interest at 7.5% in cash and 7.5% in kind for total of 15%
By Lisa Kerner
Charlotte, N.C., July 1 – Exelixis, Inc. issued $100 million of secured convertible notes due 2018 to Deerfield Partners, LP and Deerfield International Master Fund, LP, according to an 8-K filing with the Securities and Exchange Commission.
The notes will bear interest on and after July 2 at 7.5% per annum to be paid in cash, quarterly in arrears, and 7.5% per annum to be paid in kind, quarterly in arrears, for a total interest rate of 15% per annum.
On March 9, Exelixis gave notice to the Deerfield purchasers that it required them to purchase the notes under a June 2, 2010 note purchase agreement that was amended on Aug. 6, 2012, Aug. 1, 2013, Jan. 22, 2014 and July 10, 2014.
As previously reported, as a result, the warrant strike price was adjusted to the lesser of (i) the exercise price and (ii) 120% of the volume-weighted average price of the company's common stock for the 10 trading days immediately following March 4, and the term of the warrants was extended by two years to Jan. 22, 2018.
In addition, Exelixis extended the maturity of notes issued under the agreement to July 1, 2018 from July 1, 2015.
Exelixis is a South San Francisco, Calif.-based biotechnology company.
| Issuer: | Exelixis, Inc.
|
| Issue: | Secured convertible notes
|
| Amount: | $100 million
|
| Maturity: | July 1, 2018
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| Coupon: | 7.5% per annum in cash and 7.5% per annum in kind payable quarterly in arrears
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| Investors: | Deerfield Partners, LP and Deerfield International Master Fund, LP
|
| Settlement date: | July 1
|
| Stock symbol: | Nasdaq: EXEL
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| Stock price: | $3.76 at close June 30
|
| Market capitalization: | $684.13 million
|
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