OSI 2% notes remain convertible through July due to fundamental change

By Susanna Moon

Chicago, June 4 - OSI Pharmaceuticals, Inc. said its 2% convertible senior subordinated notes due 2025 are convertible at least through July 6.

The notes became convertible on June 3 when Astellas Pharma, Inc. became the beneficial owner of 50% or more of the company's voting stock under a tender offer, which constitutes a fundamental change under the indenture, according to a company press release.

Holders may convert the notes for 30 days after the announcement of the fundamental change.

The company said it has elected to satisfy its conversion obligation in cash.

The notes are convertible at a rate of 33.9847 common shares per $1,000 principal amount, or an effective conversion price of $29.43 per share.

OSI's stock (Nasdaq: OSIP) closed at $57.50 on June 3.

As previously announced, the notes also became convertible on April 1 and remain convertible through June 30 because the company's common stock closed at or above $35.32 per share for 20 trading days within the 30-trading-day period ended March 31.

Based in Long Island, N.Y., OSI Pharmaceuticals develops and commercializes targeted medicines designed to extend life and improve the quality of life for patients with cancer, diabetes or obesity.

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