PDL BioPharma ups convertibles, stock buyback program to $275 million

By Marisa Wong

Los Angeles, Dec. 16 – PDL BioPharma, Inc. said its board of directors has authorized a $75 million increase to the $200 million common stock and convertible notes repurchase authorization that was previously announced on Dec. 9, for a total of $275 million.

On Friday, the company announced it had entered into separate privately negotiated exchange agreements to exchange about 80% of its outstanding 2.75% convertible senior notes due 2021 and 2024 for $98 million in cash and 13.4 million shares of common stock.

The cash and common stock to be distributed by PDL in this exchange will utilize about $143.8 million of the original $200 million authorization based on the closing price of PDL’s common stock on Dec. 12.

Dominique Monnet, president and chief executive officer of PDL, said in Monday’s press release, “The note exchange we announced last week was an important step towards optimizing our ability to monetize assets and return the net proceeds to our shareholders. By repurchasing approximately 80% of our convertible notes, we have made our assets more attractive to potential buyers. This may also increase the monetization proceeds that will flow to our shareholders.

“[Monday’s] increased authorization will enable us to augment our efforts with common stock repurchases or additional note repurchases as we execute our strategic plan.”

Purchases may be made in open-market transactions, in block transactions on or off an exchange, in privately negotiated transactions or by other means, the company noted.

BofA Securities is acting as financial advisor to PDL in connection with the repurchase program.

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

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