Incyte agrees to exchange some 0.375% convertibles, 1.25% convertibles

By Susanna Moon

Chicago, Feb. 21 – Incyte Corp. agreed to issue stock in exchange for $259 million principal amount of its 0.375% convertible senior notes due 2018 and $274.5 million principal amount of its 1.25% convertible senior notes due 2020.

Incyte entered into a letter agreement dated Feb. 17 with entities affiliated with Julian C. Baker, a director of the company, according to an 8-K filing with the Securities and Exchange Commission.

In exchange, the company will issue 10,610,782 shares of its common stock.

More exchanges

Incyte also agreed to swap out $86,764,000 principal amount of the 2018 convertibles and $73,724,000 principal amount of the 2020 convertibles.

Holders agreed to receive 3,100,708 shares and 25,074 additional shares as well as $7.5 million in cash.

The company entered into separately negotiated agreements with some noteholders on Feb. 17.

Incyte is a Wilmington, Del.-based drug discovery and development company focused on proprietary small molecule drugs for oncology, inflammation and diabetes.

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