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Pernix Therapeutics solicits consents to amend 12% secured notes
By Marisa Wong
Madison, Wis., April 13 – Pernix Therapeutics Holdings, Inc. announced it is seeking consents for proposed amendments to the indenture governing its 12% senior secured notes due 2020.
The amendments to the indenture would allow the company to incur additional debt to the extent it ratably reduces the outstanding aggregate principal amount of its 8% convertible senior notes due 2019, provided that such additional debt does not exceed $42.2 million, according to a press release.
The company said it is negotiating to materially reduce the outstanding amount of its 8% convertible notes and to remove some restrictive covenants included in the indenture governing the 8% notes.
The proposed changes to the 12% notes require consents from holders of a majority in principal amount of the notes outstanding as of 5 p.m. ET on April 13.
The company will pay a consent fee in cash equal to 1% of the principal amount of any notes for which consents are delivered.
The consent solicitation will expire at 5 p.m. ET on April 28.
The company said it has entered into a support agreement with beneficial holders representing about 58% of the outstanding principal amount that have agreed to consent to the amendments.
The specialty pharmaceutical company is based in Morristown, N.J.
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