Pharming buys back €5 million 6.875% convertibles

By Susanna Moon

Chicago, Jan. 12 - Pharming Group NV said it reached an agreement with an additional holder to cancel €5 million of its 6.875% convertible bonds due 2012.

In exchange for the cancellation, holders will receive €1 million in cash and €4 million in shares valued at €2.64 per share.

Pharming said on Dec. 30 that it was continuing discussions with bondholders following the recent discounted redemption and conversion of €20 million of its €70 million of the convertibles.

On Dec. 8, the company said that €20.1 million of its €70 million of bonds would be canceled under an agreement reached with several bondholders.

The company previously said that due to conditions in the global financial markets, several bondholders expressed their desire to redeem the bonds at an early stage albeit at a significant discount.

After completion of the latest redemption, the outstanding debt under the convertible bond agreement is now just less than €45 million.

"The transaction announced today further improves our balance sheet. We continue to remain sensitive to the short-term needs of some of the convertible bond holders and our intention to strengthen our financial position," Sijmen de Vries, chief executive officer at Pharming, said in a statement.

"In addition, the debt settlement reduces annual bond interest payments by approximately €350,000 per annum," de Vries said. "We look forward to arranging similar deals with other holders of convertible bonds."

Pharming Group is a biotechnology company based in Leiden, the Netherlands.

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