SkyePharma gets consents needed to amend conversion prices, put dates of convertibles due 2024, 2025

By Angela McDaniels

Tacoma, Wash., Sept. 23 - SkyePharma plc said it received the consents needed to make changes to its £69.6 million convertible bonds due in 2024 and £20 million convertibles due 2025.

For the 2024 convertibles, the company wants to change the conversion price to 371p per ordinary share from 95p and to replace the current put dates falling on May 4 of 2009, 2011, 2014 and 2019 with put dates falling on Nov. 4 of 2013, 2015, 2017 and 2020.

For the 2025 convertibles, the company wants to change the conversion price to 383p per ordinary share from 58p and to replace the current put dates falling on June 3 of 2010, 2012, 2015 and 2020 with put dates falling on Dec. 3 of 2014, 2016, 2018 and 2021.

The amendments are being carried out via a bondholders meeting for the 2024 convertibles and via a written resolution for the 2025 convertibles.

Consents from holders of the 2025 convertibles have already been obtained, and as of Tuesday, enough votes had been cast electronically to approve the changes to the 2024 convertibles at the bondholders meeting, according to a company news release.

The meeting will be held at 5 a.m. ET on Sept. 25.

The company previously said that holders of at least 75% of the 2024 convertibles must be present and holders of at least 75% of the convertibles must vote to approve the amendment in order for it to pass.

The amendment to the 2025 convertibles is conditioned on the 2024 convertibles being amended and vice versa.

When plans for the amendments were announced on Sept. 2, SkyePharma said holders of 69.9% of the 2024 convertibles and 100% of the 2025 convertibles had agreed to the amendments.

The company said it proposed the amendments in connection with its £18.4 million planned offering of shares and a share capital reorganization, under which shareholders will receive one new consolidated ordinary share for every 100 existing ordinary shares.

For the 2024 and 2025 convertibles, the proposed conversion prices are equivalent to 3.71p and 3.82p, respectively, per existing ordinary share, the news release said.

The company expects that the new shares will begin trading on the London Stock Exchange on Sept. 26 and that the amendments will be implemented on or around Oct. 1.

SkyePharma, a London-based pharmaceutical company, issued the convertibles via SkyePharma (Jersey) Ltd.

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