Pharming bondholders agree to cancellation of €20.1 million 6.875% convertibles

By Angela McDaniels

Tacoma, Wash., Dec. 8 - Pharming Group NV said €20.1 million of its €70 million 6.875% convertible bonds due 2012 will be cancelled under an agreement reached with several bondholders.

In exchange for the cancellation, the bondholders will receive €3.8 million in cash and 6.2 million shares valued at €2.64 each.

The company said that due to conditions in the global financial markets, several bondholders expressed their desire to redeem the bonds at an early stage albeit at a significant discount.

"The transactions announced today are an important step in improving our balance sheet by reduction of debt and by increasing our equity position," chief executive officer Sijmen de Vries said in a company news release. "We look forward to arranging similar deals with other holders of convertible bonds."

de Vries added that the company is considering options to further improve its financial position, including project-specific financing, licensing deals, loans and limited equity transactions.

Pharming Group is a biotechnology company based in Leiden, the Netherlands.

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