Shire: Holders unlikely to put $1.1 billion 2.75% convertibles in May

By Susanna Moon

Chicago, Feb. 23 - Shire plc believes holders are unlikely to exercise the put option on the company's $1.1 billion of 2.75% convertible bonds due 2014 as the bonds were trading above par as of Feb. 21, according to a 10-K filing with the Securities and Exchange Commission.

The bonds are putable at par plus accrued interest on May 9 or after a change of control.

The bonds are also callable at par plus accrued interest: (i) at any time after May 23 if the value of the common shares underlying each $100,000 principal amount of bonds would exceed $130,000 on at least 20 out of 30 consecutive dealing days or (ii) at any time once 85% or more of the original bond issue has been converted, purchased and canceled or redeemed.

The company's shares closed at 2,248p (London: SHP) on Feb. 22.

Shire is a Basingstoke, England-based pharmaceutical company.

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