By Sheri Kasprzak
Atlanta, May 31 - SkyePharma plc announced plans to raise £20 million in a private placement of convertible bonds.
The bonds bear interest at 8% annually, have a first put after five years and have a final maturity of 2025. The bonds are convertible into common shares at a premium equal to 50% of the volume-weighted average price on May 27.
The proceeds from the bonds will be used to defray the costs associated with redeeming its 6% convertible bond due in 2005, a cost that could total £9.8 million. The remainder will be used for working capital.
Credit Suisse First Boston Ltd. is the sole bookrunner in the deal.
Based in London, SkyePharma is a pharmaceutical company that develops oral, injectable, inhaled and topical products.
| Issuer: | SkyePharma plc
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| Issue: | Convertible bonds
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| Amount: | £20 million
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| Maturity: | 2025
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Conversion price: | Equal to 50% of the volume-weighted average price on May 27
|
| Put: | First put after five years
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| Warrants: | No
|
| Placement agent: | Credit Suisse First Boston Ltd.
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| Pricing date: | May 27
|
| Stock price: | 54.32p at close May 27
|
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