Par begins modified Dutch auction tender offer for 2.875% convertibles

By Angela McDaniels

Tacoma, Wash., Oct. 14 - Par Pharmaceutical Cos., Inc. has begun a modified Dutch auction tender offer for a portion of its $78,551,000 outstanding principal amount of 2.875% senior subordinated convertible notes due Sept. 30, 2010, according to a company news release.

The company is offering to purchase up to $65 million principal amount, or 82.7%, of the outstanding convertibles for $990 to $982.50 per $1,000 principal amount.

Holders will also receive accrued interest up to but excluding the purchase date.

Holders who tender should specify their bid price in multiples of $0.50 per $1,000 principal amount.

If the principal amount of convertibles properly tendered at or below the selected purchase price exceeds the amount Par is seeking to purchase, the company will accept for payment convertibles tendered at or below the purchase price on a pro rata basis.

The tender offer will expire at midnight ET on Nov. 11.

The offer is not conditioned on any minimum principal amount of convertibles being tendered.

Par said it is conducting the tender offer in order to reduce its outstanding debt and to provide an opportunity to holders to gain liquidity that they may not otherwise have.

The company expects to fund the offer with available cash on hand.

JMP Securities LLC is the dealer manager, and the information agent is Georgeson Inc. (888 877-5360 or, for banks and brokerage firms, 212 440-9800).

Par makes generic drugs and branded pharmaceuticals for specialty markets and is based in Woodcliff Lake, N.J.

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