Solazyme to issue additional shares for exchanged 6% convertibles

By Marisa Wong

Madison, Wis., June 20 – Solazyme, Inc. entered into note exchange agreements with some holders of its 6% convertible senior subordinated notes due 2018 on June 19. Those holders agreed to exchange about $17.5 million of their notes, according to an 8-K filing with the Securities and Exchange Commission.

In exchange for the notes, together with accrued interest through the settlement date of the exchange, the holders will receive 1,765,314 shares of the company’s common stock plus a number of additional shares roughly equal to $7.6 million.

The additional shares are based on the volume-weighted average price of the common stock over specified averaging periods. In some circumstances, the company may be required to pay cash in lieu of a portion of the additional shares.

Settlement is expected to occur on June 30.

South San Francisco, Calif.-based Solazyme uses plant-based sugars to produce oils for use in the chemicals and fuels industries, as well as for the nutrition, skin and personal care markets.

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