Savient holders exchange $108 million of 4.75% convertible notes

By Jennifer Chiou

New York, May 9 - Savient Pharmaceuticals, Inc. closed on the exchange of about $108 million of its 4.75% convertible senior notes due 2018, according to an 8-K filing with the Securities and Exchange Commission.

In exchange for the notes, the company issued units comprised of an equal amount of new senior secured discount notes due 2019 as well as warrants to purchase an aggregate of 4,000,019 Savient shares at an exercise price of $1.863 per share. The company's shares (Nasdaq: SVNT) closed at $1.62 each on Wednesday.

The filing stated that holders also agreed to simultaneously purchase additional units for net proceeds to Savient of about $44 million.

Savient said that the aggregate principal amount at maturity of the new notes issued upon the exchange of the existing notes plus the new notes issued to the holders upon purchase of the additional units is roughly $171 million.

The new notes were issued in an original principal amount equal to 73.78% of their fully accreted principal amount and have a cash coupon of 3% in the first three years and a cash coupon of 12% per year thereafter.

The new notes will reach their fully accreted principal amount on May 9, 2015 and will mature on May 9, 2019.

At any time prior to May 9, 2015, the company may redeem all or part of the new notes at par plus a premium and accrued interest.

Prior to May 9, 2015, the company may redeem up to 35% of the aggregate principal amount of the new notes at a redemption price of 106% of the principal amount plus accrued interest with the net cash proceeds of one or more equity offerings.

After that date and before May 9, 2016, Savient said that it may redeem all or part of the new notes at a redemption price of 106 plus interest. After May 9, 2016 and before May 9, 2017, it may redeem all or part of the new notes at a redemption price of 103 plus interest.

And, after May 9, 2017 and before maturity, the company may redeem all or part of the new notes at a redemption price of par plus accrued interest.

Proceeds from the additional units will be used for general working capital purposes.

U.S. Bank NA is the trustee.

Savient is a pharmaceutical company located in East Brunswick, N.J.

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