Spectrum to swap $69.5 million 2.75% convertibles for stock, cash

New York, Oct. 10 – Spectrum Pharmaceuticals, Inc. will exchange $69.5 million principal amount of its 2.75% convertible senior notes due Dec. 15, 2018 for stock and cash, the company said in a news release on Tuesday.

Under the privately negotiated agreements, holders will receive 5.4 million shares and $26.7 million in cash plus accrued interest in cash.

Settlement is planned for Oct. 12.

Following closing, $40.5 million of the convertibles will remain outstanding.

In connection with the exchange, the company will unwind the corresponding convertible note hedge and warrant transactions.

Spectrum is a Henderson, Nev., biotechnology company focused on hematology and oncology.

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