Nektar exchanges $9 million 3.5% convertibles for stock

New York, Jan. 26 - Nektar Therapeutics said it exchanged $9 million of its 3.5% convertible subordinated notes due 2007 for common stock.

The San Carlos, Calif., drug delivery technology company issued 575,605 shares in exchange for the notes.

The transaction was privately negotiated and took place on Jan. 22. Nektar stock closed at $17.40 on that day.

Nektar has previously exchanged 3.5% convertibles for new 3% convertible subordinated notes due June 2010 in several privately negotiated transactions.

On Nov. 3 the company said it issued $11.71 million of 3% convertibles in exchange for $17.125 million of its existing 3.5% convertibles.

The new notes have a longer maturity, a lower coupon and a lower conversion price ($11.35 versus $50.46) than the old notes.

Terms of the new notes were the same as a previous transactions, 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, and Oct. 20, when Nektar 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 new 3% notes are now collateralized by a total of $4.9 million of U.S. Treasuries.

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