King tenders for all $400 million of 1.25% convertible notes due 2026

By Devika Patel

Knoxville, Tenn., Jan. 31 - King Pharmaceuticals, Inc. said it has begun a tender offer for all $400 million of its 1.25% convertible senior notes due 2026.

The company will pay par plus interest to the purchase date for the convertibles.

The offer is related to the change of control resulting from Pfizer Inc.'s acquisition of about 92.5% of the company's outstanding common stock.

The offer will expire at 11:59 p.m. ET on Feb. 28.

The company also said that the notes are convertible at any time until 30 days following the anticipated merger of a Pfizer subsidiary into the company, with the company surviving the merger as a subsidiary of Pfizer. Company shares closed at $14.24 (NYSE: KG) on Monday, which is a 31.64% discount to the original conversion price of the notes, $20.83.

The trustee, paying agent and conversion agent for the offer is the Bank of New York Mellon Trust Co., NA (212 815-3687).

King Pharmaceuticals is a Bristol, Tenn.-based branded pharmaceutical company.

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