Vertex to issue shares in exchange for $143.5 million of convertibles

By Susanna Moon

Chicago, June 8 - Vertex Pharmaceuticals Inc. said holders agreed to exchange a total of $143.5 million principal amount of 4.75% convertible senior subordinated notes due 2013 for about 6.7 million of the company's common shares.

Monday morning, the company said holders agreed to exchange $103.3 million principal amount of 4.75% convertibles for about 4.8 million of the company's common shares.

Later that day, the company said holders agreed to exchange another $40.2 million of the convertibles for about 1.9 million shares.

The amount of common stock to be issued in the original exchange is 287,000 shares more than the number of shares into which the notes were convertible under the original terms. In the added exchange, the amount of shares to be issued is 112,000 more than the number of shares into which the notes were convertible.

The additional shares are largely for unpaid interest through February 2010, when the convertibles would have been callable, according to a press release.

Vertex expects to complete the exchange for the initial $103.3 million of convertibles by the close of business on Wednesday and the additional $40.2 million of convertibles on Thursday.

After the exchanges, there will be about $144 million of the convertibles remaining.

Vertex is a Cambridge, Mass.-based drug maker.

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