Emergent BioSolutions to terminate conversion rights of 2.875% notes

By Wendy Van Sickle

Columbus, Ohio, Nov. 14 – Emergent BioSolutions Inc. has elected to terminate all conversion rights of its 2.875% convertible senior notes due 2021 on Dec. 29, according to a press release.

As of Monday, about $250 million of the notes were outstanding.

The company is permitted to terminate the holders’ rights to convert all the notes at any time after Jan. 20, 2017, if the last reported sale price of the common stock has been at least 130% of the conversion price for at least 20 trading days during any 30 consecutive trading-day period, which equals $40.14.

Holders may continue to convert their notes until 5 p.m. ET on Dec. 28 at a conversion rate of 32.3860 shares of common stock per $1,000 principal amount of notes plus a make-whole payment of an additional 3.1556 shares per $1,000 principal amount.

No accrued interest is payable upon conversion of the notes.

Any notes that remain outstanding immediately after the conversion rights are terminated will be subject to settlement solely by a cash payment of outstanding principal and any then unpaid interest.

Emergent is a specialty pharmaceutical company based in Rockville, Md.

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