Guilford Pharmaceuticals greenshoe exercised, raising convertibles to $69.3 million

New York, July 30 - Guilford Pharmaceuticals Inc. said underwriters of its recent offering of convertible subordinated notes due 2008 exercised $9.3 million of the $20 million over-allotment option, raising the size of the deal to $69.3 million.

The Baltimore pharmaceutical company originally sold $60 million of the securities after the market closed on June 11, pricing them to yield 5.0% with a 30% initial conversion premium.

Citigroup was lead manager of the Rule 144A deal.

The issue was sold on swap, as Guilford said it would use up to $5.3 million of proceeds to buy shares from short sellers participating in the convertible.

Remaining proceeds will be used for general corporate purposes, including working capital and potential acquisitions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.