PDL BioPharma increases conversion rate on 2% convertibles due 2012

By Marisa Wong

Madison, Wis., Sept. 13 - PDL BioPharma, Inc. said it has adjusted the conversion rate of its 2% convertible senior notes due Feb. 15, 2012, effective Sept. 16.

The rate adjustment is a result of the planned payment of a special dividend on Oct. 1 to all stockholders who own shares of PDL on Sept. 15, the record date.

The conversion rate for the notes has been adjusted to 140.571 shares of common stock per $1,000 principal amount, or $7.11 per share, from 128.318 shares of common stock per $1,000 principal amount.

The conversion rate has been increased by multiplying the previous conversion rate by a fraction, the numerator of which is the average closing price of PDL's common stock for the five consecutive trading days immediately preceding the ex-dividend date of Sept. 13 for the cash dividend, and the denominator of which is the difference of the average closing price less the dividend amount.

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

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