Vertex exchanges $79.3 million convertibles for new notes

New York, Sept. 13 - Vertex Pharmaceuticals Inc. said it has agreed to exchange $79.3 million of its existing 5% convertible subordinated notes due 2007 on a one-for-one basis for new notes with a higher coupon, longer maturity and lower conversion price.

The new notes - of which Vertex will issue $79.3 million - will be identical to those issued in a similar exchange in February but will trade separately.

They will pay a 5.75% coupon, mature on Feb. 15, 2011 and convert at $14.94 compared to $92.26 for the existing notes. The conversion price is a 41.6% premium over the average closing price for Vertex's stock over the last four trading days. The new notes are callable from Feb. 15, 2007 onwards.

The latest transaction was agreed with six holders, the Cambridge, Mass., pharmaceutical company said.

The exchange leaves $82.6 million of the 5% convertibles outstanding and $232.4 million of the new 5.75% convertibles. It is expected to close on Sept. 17.

Vertex exchanged $153.5 million of the 5% convertibles in February, also on a one-for-one basis.

© 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.