Enzon gets no tenders of 4% convertibles; $115.6 million converted

By Susanna Moon

Chicago, March 8 - Enzon Pharmaceuticals, Inc. said it received no tenders in its offer to purchase for cash its outstanding 4% convertible senior notes due 2013.

As previously noted, the company was required to offer to buy the convertibles as a result of the sale of its specialty pharmaceutical business on Jan. 29.

The offer expired at midnight ET on March 5. It began on Feb. 5.

The sale also triggered an increase in the conversion rate between Jan. 29 and March 4 to 116.535 shares per $1,000 principal amount, according to a company press release. During this period, $115.6 million principal amount of the notes was converted into about 13.5 million common shares.

Enzon said the enhanced conversion period has expired and that the conversion rate has reverted to 104.712 shares per $1,000 principal amount of notes.

The outstanding balance of the convertibles is now $134.5 million.

The company said on Jan. 29 that it had planned to repurchase its 4% convertibles with proceeds from the sale of its specialty pharmaceutical business to the sigma-tau Group, which yielded proceeds of $300 million in cash.

Enzon is a Bridgewater, N.J.-based biopharmaceutical company.

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