Alpharma to redeem 8 5/8% notes, 3% convertibles

By Jennifer Chiou

New York, Dec. 23 - Alpharma Inc. announced the redemption of all its 8 5/8% senior notes due 2011 and all its 3% senior subordinated convertible notes, according to an 8-K filing with the Securities and Exchange Commission.

The Fort Lee, N.J., specialty pharmaceutical company will pay $243.3 million for the 8 5/8% notes on Jan. 23.

If convertible noteholders do not convert their securities, Alpharma said it will pay $161.9 million on Jan. 23.

Holders of the 3% convertibles may convert their notes into the company's class A common stock at a conversion price of $32.11. The company's stock closed down $0.18, or 0.59%, at $30.21 on Friday.

On Dec. 20, Alpharma's indirect wholly owned subsidiary repaid in full its $95 million loan from DNB Nor Bank. On the same date, Alpharma said it paid down the $30 million term loan portion of its $225 million asset-backed loan facility.

According to the filing, the repayments were required under the terms of the loan agreements for the closing of the generics business sale.

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