Cell Genesys buys back $74.1 million 3.125% convertibles at 60% discount

By Susanna Moon

Chicago, March 9 - Cell Genesys Inc. said it repurchased $74.1 million principal amount of its 3.125% convertible senior notes due in 2011 at an overall discount of about 60%.

The company paid $29.6 million in cash plus accrued interest.

The early retirement of debt resulted in a net gain of $42.7 million after deducting transaction costs.

In January the company repurchased an additional $2.6 million face value of the notes, also at 60% discount, in a series of privately negotiated transactions with institutional holders of the notes, for a total of $1 million in cash plus accrued interest.

As of Monday, $68.3 million principal amount remains outstanding.

The San Francisco-based company develops treatments for cancer.

© 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.