AMAG 3¼% convertible holders to have put right following merger

By Taylor Fox

New York, Oct. 1 – A Covis Group Sarl wholly-owned subsidiary and AMAG Pharmaceuticals, Inc. are set to merge upon completion of an acquisition, which will trigger a put right for holders of AMAG’s 3¼% convertible senior unsecured notes due 2022.

The outstanding AMAG shares not tendered in a tender offer set to commence this month will be converted into the right to receive the same $13.75 per share in cash paid in the tender offer, according to a news release.

The merger will result in a change of control under the terms of AMAG’s indenture governing its 3¼% convertibles, and holders of the convertibles will have the right to put their notes at par for 20 business days following the closing of the merger.

Covis plans to finance the transaction with cash on hand, and a combination of committed debt and equity financing.

AMAG is a Waltham, Mass., biopharmaceutical company. Covis is a Zug, Switzerland-based specialty pharmaceutical company.

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