Santhera Pharmaceuticals settles 5% convertibles exchange offer

Chicago, May 3 – Santhera Pharmaceuticals Holding AG announced the settlement of its March 25 exchange offer for its CHF 60 million of 5% convertible bonds due 2022 (ISIN: CH0353955195), according to a company news release.

The company accepted CHF 44,845,000 of the convertibles tendered, or 74.7%.

Settlement will take place on May 4. The conversion price will be announced on May 4.

As previously reported, a total of 233,194 shares and CHF 30,270,375 of new bonds are expected to be delivered to settle the exchange.

The total figure includes the participation of Highbridge Tactical Credit Master Fund, LP, which holds 32% of the bonds and is the largest holder.

Also as previously reported, the company sought to exchange all of the bonds in circulation. In the exchange, the company offered for each bond with a CHF 5,000 nominal value 26 shares of Santhera and one new 7.5% convertible bond due Aug. 17, 2024 with a nominal value of CHF 3,375 and a significantly reduced conversion price, to be issued by the company and listed on the SIX Swiss Exchange.

The company was additionally seeking votes by holders to restructure the bonds, which was independent of the exchange offer.

The company needed a two-thirds majority consent, which it did not receive.

The company believes restructuring is needed to enable it to raise additional financing and remain a going concern.

The maturity date would have been pushed to Aug. 17, 2024 from Feb. 17, 2022.

Stifel Nicolaus Europe Ltd. is the financial adviser to the company.

Santhera is a Liestal, Switzerland-based pharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.