NPS Pharmaceuticals buys back $171.2 million 3% convertibles in tender

By Susanna Moon

Chicago, Oct. 18 - NPS Pharmaceuticals, Inc. said investors tendered $171.2 million of notes in the previously announced tender offer for the company's 3% convertible notes due 2008.

The amount tendered represents 99.7% of the outstanding principal amount of the convertibles.

The tender offer expired at midnight ET on Wednesday, pushed back from Oct. 4. It began on Sept. 6.

The company said it would pay $987.50, augmented from $982.50, for each $1,000 principal amount of notes tendered, plus accrued interest up to but excluding the purchase date.

NPS said it is purchasing the notes to reduce outstanding debt and to reduce interest expense.

As already reported, the tender offer will be funded from the proceeds of the company's recently completed offering of $50 million of 5.75% convertible notes due 2014, a $100 million private placement of secured 15½% Sensipar B bonds due 2017 completed by its subsidiary and a $50 million up-front payment received from Drug Royalty LP3 as part of NPS' sale of its right to receive royalty payments on sales of Preotact.

Jefferies & Co., Inc. was dealer manager for the tender offer, and D.F. King & Co., Inc. (212 269-5550 or 888 644-5854) was information agent.

NPS is a biopharmaceutical company based in Parsippany, N.J.

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