Enzon Pharmaceuticals seeks consents for its 4% convertibles due 2013

By Susanna Moon

Chicago, Aug. 13 - Enzon Pharmaceuticals Inc. began a consent solicitation to amend its $275 million of 4% convertible senior notes due 2013, according to an 8-K filing with the Securities and Exchange Commission.

The consent payment is $2.50 per $1,000 principal amount of the notes. The consent deadline is 5 p.m. ET on Aug. 22.

Enzon said it is soliciting consents to eliminate any exceptions to circumstances under which a sale, transfer or lease by Enzon of all or substantially all of its properties or assets to another person would constitute a fundamental change.

The solicitation is related to the spinoff of Enzon's biotechnology business as a separate publicly traded company.

Goldman, Sachs & Co. is the solicitation agent.

Global Bondholder Services Corp. is information and tabulation agent.

Enzon said it would execute a supplemental indenture after it gets the required consents.

The Bridgewater, N.J.-based biopharmaceutical company priced $225 million of the convertibles on May 17, 2006 with a $50 million greenshoe that was later exercised.

The convertibles are non-callable for the first three years, after which they may be called only if Enzon stock exceeds 140% of the conversion price of $9.55.

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