First Horizon Pharmaceutical accepts all 1.75% convertibles in net share settlement exchange

By Jennifer Chiou

New York, May 3 - First Horizon Pharmaceutical Corp. said holders of 100% of its $150 million of 1.75% contingent convertible senior subordinated notes due 2024 elected to exchange their securities.

The exchange offer ended at 5 p.m. ET on May 2.

The Alpharetta, Ga., specialty pharmaceutical company began offering new 1.75% contingent convertible senior subordinated notes due 2024 with net share settlement on a one-for-one basis for the existing notes on March 16.

Under the terms of the new notes, conversions will be paid in cash up to the principal amount of the notes. Any remaining value will be paid in stock. The existing notes are convertible into stock only.

On April 19, the company increased the exchange fee to $7.50 from $2.50 per $1,000 principal amount of convertibles.

As of April 18, the original expiration, $54.635 million of the $150 million convertibles outstanding had been tendered.

The company previously said it waived the minimum tender condition to the exchange offer, which required a minimum of $112.5 million of the convertibles to be tendered.

The new provision will allow First Horizon to use the treasury method of calculating earnings per share, which is less dilutive.

In addition, the new notes will have change-of-control protection up to March 13, 2007 through an increase in the conversion rate.

UBS Investment Bank is the dealer manager (888 722-9555, ext. 4210), and Morrow & Co. Inc. is the information agent (203 658-9400 or 800 662-5200).

© 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.