By Sheri Kasprzak
New York, Aug. 21 - Oscient Pharmaceuticals Inc. said its subsidiary Guardian II completed a private placement of senior secured notes for $20 million. Oscient also closed a $10 million private placement of stock connected to the offering.
Guardian sold 12% notes to Paul Royalty Fund Holdings II, LP. The notes are due in four years. Guardian may exercise an option to extend the maturity to six years.
Paul Royalty Fund also received warrants for 2,304,147 shares, exercisable at $0.8680 each for seven years.
Connected to that financing, Oscient completed a $10 million stock sale with Paul Royalty Fund Holdings, selling 11,111,111 shares at $0.90 apiece and issuing warrants for a further 2,304,147 shares, exercisable at $0.8680 each for seven years.
The two financings were conducted as part of Oscient's agreement to buy exclusive rights to Antarar 130 mg and Antarar 43 mg capsules from Reliant Pharmaceuticals, Inc. The drugs help lower blood cholesterol and high triglycerides.
Waltham, Mass.-based Oscient is a biopharmaceutical company focused on antibiotic products.
Notes
Issuer: | Oscient Pharmaceuticals Inc. (subsidiary Guardian II)
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Issue: | Senior secured notes
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Amount: | $20 million
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Maturity: | Four years
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Coupon: | 12%
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Price: | Par
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Yield: | 12%
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Warrants: | For 2,304,147 shares
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Warrant expiration: | Seven years
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Warrant strike price: | $0.8680
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Investor: | Paul Royalty Fund Holdings II, LP
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Settlement date: | Aug. 18
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Stock symbol: | Nasdaq: OSCI
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Stock price: | $1.25 at close Aug. 18
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Stock
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Issuer: | Oscient Pharmaceuticals Inc.
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Issue: | Stock
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Amount: | $10 million
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Shares: | 11,111,111
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Price: | $0.90
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Warrants: | For 2,304,147 shares
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Warrant expiration: | Seven years
|
Warrant strike price: | $0.8680
|
Investor: | Paul Royalty Fund Holdings II, LP
|
Settlement date: | Aug. 18
|
Stock symbol: | Nasdaq: OSCI
|
Stock price: | $1.25 at close Aug. 18
|
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