Indevus accepts tenders for 99.9% of notes in exchange offer for 6.25% convertibles

By Jennifer Chiou

New York, Aug. 7 - Indevus Pharmaceuticals, Inc. said it accepted tenders for $71.925 million, or 99.9%, of notes in its offer to exchange all of its 6.25% convertible senior notes due July 15, 2008 for an equal amount of its 6.25% convertible senior notes due July 15, 2009.

The offer expired at 9 a.m. ET on Aug. 6.

The terms of the new notes are substantially the same as those of the old notes except for their redemption provisions.

The new notes will not be redeemable until July 15, 2008, although the old notes have been redeemable since July 20, 2006.

Both series of notes are redeemable only if the company's common stock trades at or above a certain threshold for at least 20 trading days in any period of 30 consecutive trading days. For the old notes, the redemption threshold is 150% of the conversion price then in effect, which currently equals a threshold level of $9.984. For the new notes, the threshold will be fixed at $8.50.

The exchange offer had no minimum tender condition.

The Bank of New York Trust Co., NA (212 815-8394) was the exchange agent.

The Lexington, Mass.-based biopharmaceutical company said that about $75,000 of notes will remain outstanding.

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