InterMune agrees to issue shares for $32.25 million of convertibles

By Jennifer Chiou

New York, April 3 - InterMune, Inc. reached an agreement with Credit Suisse Securities (USA) LLC to issue 772,000 of its shares plus an aggregate number of shares equal to $10,967,840 divided equally over each of the 10 trading days through April 15 in exchange for the $22.75 million of 0.25% convertible senior notes due 2011 held by Credit Suisse, according to an 8-K filing with the Securities and Exchange Commission.

The $10,967,840 of shares will be divided on each day by the volume-weighted average price per share of the company's common stock with a floor of $14.00 per share and a ceiling of $19.00 per share.

Assuming a volume-weighted average price of $16.50 per share for each day of the 10-day trading period, the total number of exchanges shares would be 1,436,717. InterMune shares closed at $17.05 apiece on Thursday.

In a separately negotiated transaction, the company agreed to issue 636,500 of its shares in exchange for RHP Master Fund, Ltd.'s $9.5 million of convertibles.

InterMune intends to retire the $32.25 million of notes.

The company also said that its stockholders' meeting will occur at 1 p.m. ET on May 21.

Brisbane, Calif.-based InterMune is a biotechnology company focused on treatments for pulmonary, infectious and hepatic diseases.

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