BioMarin issues shares, cash for $139.2 million of 1.875% convertibles

By Toni Weeks

San Luis Obispo, Calif., March 18 - BioMarin Pharmaceutical Inc. announced that seven holders of its 1.875% convertible senior subordinated notes due 2017 agreed to exchange about $139.2 million principal amount of the notes for roughly 6.8 million shares and a cash payment of $7.8 million.

According to a press release, the cash payment was made to the holders "as an inducement to convert the notes."

The notes convert into shares of common stock at a conversion price of about $20.36 per share.

Due to the conversion of the notes, future interest payments of $11.7 million will no longer be required, resulting in $3.9 million in savings net of the inducement payments.

BioMarin is a biopharmaceutical company based in Novato, Calif.

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