Ligand says $20.25 million greenshoe exercised, raising convertibles to $155.25 million

New York, Dec. 2 - Ligand Pharmaceuticals Inc. said underwriters of its recent offering of 6% convertible subordinated notes due 2007 exercised the $20.25 million over-allotment option in full, increasing the size of the deal to $155.25 million

The San Diego, Calif. pharmaceutical company originally sold $135 million of the securities after the market close on Nov. 20 in a Rule 144A offering via bookrunner UBS Warburg.

The convertibles priced to yield 6.0% with a 22% initial conversion premium.

Two years of coupon payments are collateralized with Treasuries.

Ligand plans to use the remaining proceeds to complete the restructuring of its Avinza license and supply agreement with Elan Corp. plc, to buy back Ligand shares owned by Elan and for general corporate purposes.

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