Antigenics $60 million convertible talked to yield 4.75%-5.25%, up 35%-40%

Nashville, Jan. 18 - Antigenics Inc. launched $60 million of 20-year convertible notes talked to yield 4.75% to 5.25% with a 35% to 40% initial conversion premium after the close Tuesday.

UBS Investment Bank is sole bookrunner of the 144A deal, which is slated to price after the close Wednesday.

The senior unsecured notes will be non-callable for seven years, with puts in years seven, 10 and 15. Holders will have dividend and takeover protection.

Up to $10 million of proceeds will be used to purchase stock concurrently with the note offering. The company said it intends to use remaining proceeds for continued funding of its clinical programs, potential licenses and acquisitions, working capital, capital expenditures and general corporate purposes.

Antigenics shares closed Tuesday up 49 cents, or 5.4%, at $9.44. In after-hours trading, the stock was down 15 cents, or 1.59%.

The company's most advanced product candidate is Oncophage, which is in clinical trials as a treatment in renal cell carcinoma and in melanoma.

The company has said that it has been required by the Food and Drug Administration to do a second round of Phase III clinical trials for the treatment, a development that could delay the potential launch of the drug until 2008. Results from recently completed additional Phase III clinical trials of the treatment for kidney cancer are expected in early 2005, the company has said.

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