Ligand 6% convertible noteholders convert ahead of call

By Jennifer Chiou

New York, Nov. 29 - Ligand Pharmaceuticals Inc. announced that holders of all $128.15 million of its 6% convertible subordinated notes due November 2007 converted their securities ahead of the Nov. 29 redemption.

The company issued 20,759,071 shares in exchange for the notes.

The notes were converted into common stock at roughly $6.17 per share. The company's stock closed down 4 cents, or 0.37%, at $10.83 on Wednesday.

Prior to the redemption notice, another $27.1 million of notes had already converted into 4,389,934 common shares.

On Oct. 30, the San Diego, Calif., pharmaceutical company called the notes.

Noteholders would have received 101.2% of par plus accrued interest.

As already reported, Ligand and King Pharmaceuticals entered into a definitive asset purchase agreement in September, under which Ligand will sell King Pharmaceuticals the U.S. and Canadian rights to Avinza (morphine sulfate extended release) for an up-front cash consideration of $313 million plus a tiered royalty agreement through 2017.

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