InterMune convertibles settle in cash after acquisition by Roche

By Tali Rackner

Norfolk, Va., Sept. 29 – InterMune, Inc.’s 2.5% convertible senior notes due 2017 and 2.5% convertible senior notes due 2018 will settle for a fixed amount of cash going forward, according to an 8-K filing with the Securities and Exchange Commission.

The change follows the acquisition of the company by Roche Holdings, Inc.

Under a third supplemental indenture to its convertibles due 2018 and a fourth supplemental indenture to its convertibles due 2017 the convertibles may now only be converted into the merger consideration that holders would have received upon the consummation of the merger if each $1,000 principal amount of the convertibles had been converted into a number of shares equal to the prevailing conversion rate immediately before the consummation of the merger.

In addition, investors will receive the conversion payment in cash set at an amount in cash equal to the prevailing conversion rate immediately before the consummation of the merger multiplied by $74.00, without interest. The figure is the merger consideration payable for each share outstanding immediately before the consummation of the merger.

Brisbane, Calif.-based InterMune is a biotech concern focused on treatments for pulmonary, infectious and hepatic diseases.

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