Enzon holders tender mere fraction of 4% convertibles in Dutch auction tender offer

By Angela McDaniels

Tacoma, Wash., Jan. 21 - Enzon Pharmaceuticals, Inc. received tenders for $2.95 million, or 1.09%, of its $270.5 million 4% convertible senior notes due 2013 during a modified Dutch auction tender offer that ended on Jan. 21, according to a company news release.

The company will pay $740 for each $1,000 principal amount plus accrued interest up to but excluding the payment date. The payment will be made from cash on hand.

Holders who tendered had to specify a price of between $700 and $750 per $1,000 principal amount.

The company announced on Dec. 3 that its board authorized a modified Dutch auction tender offer for a portion of the convertibles. The offer for up to $133.33 million of the convertibles then began on Dec. 8. The Jan. 7 expiration date was later extended to Jan. 21.

Goldman, Sachs & Co. (800 828-3182 or 212 357-4692) was the dealer manager, and Global Bondholder Services Corp. (866 795-2200 or 212 430-3774) was the information agent.

The Bridgewater, N.J.-based biopharmaceutical company said it will evaluate ways to continue to improve its capital structure.

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