New York, Oct. 20 - Nektar Therapeutics said it issued $13.978 million of 3% convertible subordinated notes due June 2010 in exchange for $20.815 million principal amount of its existing 3.5% convertible subordinated notes due October 2007.
The San Carlos, Calif. drug delivery technology company said the exchange was completed through in a privately negotiated transaction with a single holder.
The new notes have a longer maturity, lower coupon and lower conversion price ($11.35 versus $50.46) than the old notes.
Terms of the new notes are the same as a previous transaction, announced on Oct. 10, when Nektar said it issued $33.591 million of 3% convertible subordinated notes due June 2010 in exchange for $50 million principal amount of its existing 3.5% convertible subordinated notes due October 2007.
The new 3% notes are now collateralized by a total of $3.9 million of U.S. Treasuries.
Terms of the new notes are as follows:
Issuer: Nektar Therapeutics
Issue: | Convertible subordinated notes
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Amount | $13.978 million
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Maturity: | June 30, 2010
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Coupon: | 3.0% starting Dec. 30, 2003
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Conversion price: | $11.35
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Conversion ratio: | 88.1057
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Call: | June 30, 2006 onwards
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Soft call: | At any time with coupon make-whole subject to 150% hurdle
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Settlement: | Oct. 17
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