PDL BioPharma to monetize royalties, pay special dividend in 2009

By Lisa Kerner

Charlotte, N.C., Oct. 28 - PDL BioPharma, Inc. plans to use a "sizable portion" of the proceeds from an offering of notes to pay a special cash dividend to stockholders in 2009, according to a PDL news release.

PDL's newly formed subsidiary, QHP Royalty Sub LLC, will issue $300 million principal amount of its QHP PhaRMA senior secured notes due 2015 in a non-registered offering, it was announced on Wednesday.

The notes will bear interest at a rate of 10.25%, and the transaction is expected to close on Monday.

The amount of the special dividend, as well as the record and payment dates, will be decided by PDL's board of directors on Nov. 11.

Once the securitization transaction is completed, PDL will sell to QHP certain rights under its non-exclusive license agreements with Genentech, Inc., a Roche Holding, Ltd. subsidiary.

The rights include those to receive 60% of the royalties from sales of Avastin (bevacizumab), Herceptin (trastuzumab), Lucentis (ranibizumab) and Xolair (omalizumab).

QHP will use the royalties and funds available from certain accounts to pay the principal and interest on the notes.

The notes, which may be redeemed at any time prior to maturity, will be secured in part by PDL's pledge of its equity ownership interest in QHP.

PDL is an Incline Village, Nev., biopharmaceutical company.

© 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.