By Marisa Wong
Los Angeles, Dec. 23 – Acorda Therapeutics, Inc. said it has entered into agreements with some holders of its 1.75% convertible senior notes due 2021 to exchange $276 million of the existing notes for a combination of newly issued 6% convertible senior secured notes due 2024 and cash.
For each $1,000 principal amount of existing notes tendered for exchange, the company will deliver $750 principal amount of new notes and $200 of cash.
In total, the company expects to issue roughly $207 million of new notes and pay $55.2 million in cash to participating holders.
The exchange is expected to close on Monday.
The new notes will be guaranteed by the company’s wholly owned subsidiary, Civitas Therapeutics, Inc.
The initial conversion rate for the new notes is 285.7142 shares of Acorda common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of $3.50 per share. The conversion price is a 97% premium above the company’s closing stock price of $1.78 on Dec. 20.
The company may elect to settle conversions of the new notes in cash, shares of the company’s common stock or a combination of cash and stock.
Holders who convert their 6% notes prior to June 1, 2023, other than in connection with a fundamental change, will also be entitled to an interest make-whole payment.
In addition, the notes will be converted automatically if the volume-weighted average price per share of the company’s common stock equals or exceeds 130% of the conversion price for a specified period of time.
The biopharmaceutical company is based in Ardsley, N.Y.
New notes
| Issuer: | Acorda Therapeutics, Inc.
|
| Guarantor: | Civitas Therapeutics, Inc.
|
| Issue: | Convertible senior secured notes
|
| Amount: | $207 million
|
| Maturity: | Dec. 1, 2024
|
| Coupon: | 6%
|
| Conversion price: | $3.50
|
| Conversion premium: | 97%
|
| Put option: | At par upon fundamental change
|
| Settlement date: | Dec. 23
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
