Array to swap $19 million more 2020 convertibles for stock, new notes

By Wendy Van Sickle

Columbus, Ohio, Nov. 20 – Array BioPharma Inc. entered into a privately negotiated exchange agreement on Monday to exchange an additional $19 million of its 3% convertible senior notes due 2020, according to an 8-K filing with the Securities and Exchange Commission.

The additional exchange agreement comes after separate exchange agreements on Nov. 16 that called for Array to exchange about $107.1 million of the existing 2020 notes for newly issued common stock and about $107 million of newly issued 2.625% convertible senior notes due Dec. 1, 2024.

After those agreements were announced, additional holders inquired about exchanging their convertibles under the same consideration, and as a result the number of convertibles being exchanged now totals $126.1 million.

Additionally, on Nov. 17, the number exchange shares was determined at 7,955,560, based on the volume-weighted average trading price of the company’s common stock on that date, which was about $11.67.

In connection with the exchange, holders of the 2020 notes may decide to adjust their hedge positions by purchasing shares of the company’s common stock or entering into other hedging transactions. These activities could affect the market price of the company’s common stock on the reference date for determining the number of exchange shares to be issued, the company noted.

Settlement is expected to occur on Dec. 1.

The company said it will not receive any cash proceeds from the issuance of the exchange shares or the 2024 notes.

The initial conversion rate of the new 2024 notes will be based on a conversion premium of about 32.5% over the average of the daily volume-weighted average price of the company’s common stock on Nov. 17, the company previously said.

The new notes will be non-callable prior to Dec. 8, 2021, except in the case of a fundamental change.

Array is a Boulder, Colo.-based biopharmaceutical company focused on small-molecule drugs to treat patients afflicted with cancer and inflammatory diseases.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.