By Jennifer Chiou
New York, Nov. 5 - PDL BioPharma, Inc. agreed on Oct. 27 to issue $92 million of new convertible senior notes due Feb. 15, 2015 with a 2.875% coupon and an initial conversion premium of 37.25%, according to an 8-K filing with the Securities and Exchange Commission.
The company also agreed to place for cash an additional $88 million of the 2.875% convertibles for a total issue amount of $180 million of new notes.
The new notes outside of the placement will be issued in exchange for an equal amount of existing 2% convertible senior notes due Feb. 15, 2012. Now, $136 million of the old notes remains outstanding.
The new convertibles have an initial conversion rate of 140.571 shares per $1,000 principal amount for a $7.11 per share conversion price, a 37.25% premium to the company's closing share price on Oct. 27.
PDL may redeem the notes at any time on or after Aug. 15, 2014 at par plus accrued interest.
The Rule 144A issue has no registration rights.
Proceeds from the placement will be used for corporate, capital management and business development purposes.
Lazard Frères & Co. LLC was financial advisor for the exchange and sale. JMP Securities LLC also acted as a financial advisor to the company.
PDL is an Incline Village, Nev., biopharmaceutical company.
| Issuer: | PDL BioPharma, Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $180 million ($92 million for exchange and $88 million in placement)
|
| Maturity: | Feb. 15, 2012
|
| Coupon: | 2.75%
|
| Conversion premium: | 37.25%
|
| Conversion price: | $7.11
|
| Conversion ratio: | 140.571
|
| Call: | Non-callable until Aug. 15, 2014
|
| Pricing date: | Oct. 27
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: PDLI
|
| Stock price: | $5.18 at close Oct. 27
|
| $5.53 at close Nov. 4
|
| Market capitalization: | $672.79 million
|
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