United Therapeutics' holders may convert 1% convertible senior notes

By Tali David

Minneapolis, Oct. 29 - United Therapeutics Corp. announced that its 1% convertible senior notes due Sept. 15, 2016 are convertible at the election of holders, according to a 10-Q filed with the Securities and Exchange Commission.

The notes became convertible because the company's closing common stock price was greater than or equal to 130% of the conversion price in effect for at least 20 trading days during the 30 consecutive trading days ended Sept. 30.

The convertibility and classification of the convertibles may change depending on the price of the company's common stock.

As of Sept. 30, the aggregate conversion value of the convertible notes exceeded their par value by $163.3 million using a conversion price of $78.85, the closing price of the common stock on Sept. 30, the filing said.

Upon conversion, holders entitled to receive: (a) cash equal to the lesser of the principal amount of the notes or the conversion value; and (b) to the extent the conversion value exceeds the principal amount of the notes, shares of United Therapeutics common stock.

United Therapeutics is a Silver Springs, Md.-based biotechnology company focused on chronic and life-threatening diseases.

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