InterMune exchanges $43.1 million of 2.5% convertibles at discount

By Marisa Wong

Madison, Wis., June 25 – InterMune, Inc. agreed through separately negotiated private transactions with some existing holders of its 2.5% convertible senior notes due 2017 to exchange a total of $43,099,000 of notes for 3,378,457 shares of common stock, according to an 8-K filing with the Securities and Exchange Commission.

The exchange shares are valued at $47.22 per share. The notes are to be exchanged at a rate of 78.3884 shares per $1,000 note, which represents an exchange price of $12.77 per share and a roughly $0.10 discount from the original conversion price of $12.87 per share.

Holders will also receive accrued interest on the exchanged notes up to, but excluding, the exchange settlement date.

The private transactions were negotiated on June 19. The company expected to have issued all of the exchange shares by June 25.

Following the exchange, $77,651,000 of the convertible notes remains outstanding.

The biotechnology company is based in Brisbane, Calif.

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