ImClone to redeem 1.375% convertible notes due 2024 in connection with Eli Lilly merger

By Devika Patel

Knoxville, Tenn., Nov. 26 - ImClone Systems Inc. will redeem its 1.375% convertible notes due 2024 on May 20, 2009, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

According to the filing, the redemption is being made in connection with the company's planned merger with Eli Lilly & Co. subsidiary Alaska Acquisition Corp.

On Nov. 21, the company discharged the notes' indenture and instructed the Bank of New York Mellon, as trustee, to deliver a notice of redemption to the noteholders on March 20, 2009.

ImClone also deposited a sufficient amount of funds in trust with the bank to redeem the notes, including principal and accrued interest through the redemption date. The bank is holding the deposited funds for the noteholders.

Each $1,000 in notes that was convertible prior to the effective time of the merger is, from and after the effective time of the merger, convertible into the right to receive a cash payment of $739.29.

Lilly, an Indianapolis-based pharmaceutical company, said it plans to complete the acquisition of ImClone through a short-form merger on or about Dec. 1.

ImClone is a biopharmaceutical company based in New York that develops targeted treatments for cancer.

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