Alkermes says 98.4% of convertibles tendered, sells $60 million new notes

New York, Dec. 31 - Alkermes, Inc. said $196.8 million principal amount or 98.4% of its 3.75% convertible subordinated notes due 2007 were tendered in its exchange offer.

In addition, the Cambridge, Mass. pharmaceutical company sold $60 million of new convertibles for cash to holders who participated in the exchange.

For notes that were exchanged, Alkermes will issue $113.2 million of new convertible senior subordinated notes due 2009. Subsequent to its initial announcement on Dec. 26, Alkermes said on Dec. 31 that at closing the actual amount issued was $114.589 million.

The exchange offer expired at 5.00 p.m. ET on Dec. 24.

Alkermes had previously said it would sell up to $50 million of new convertibles.

As announced earlier, Alkermes was offering investors a smaller principal amount of new convertibles with a higher coupon and lower conversion price. The new bonds also have a longer maturity and structural seniority.

The company said the exchange was launched to reduce its debt.

For each $1,000 principal amount of the existing convertibles, Alkermes offered $575 principal amount of the new 6.52% convertible senior subordinated notes due Dec. 31, 2009, according to the prospectus.

The new securities will convert at a 17½% premium over the average stock closing price for the five trading days ending two trading days before the expiration of the offer. On Dec. 20 Alkermes said that price was $7.682.

Interest will be payable in cash or stock at the company's option. If paid in stock the shares will be valued at 90% of the average trading price over five days ending two trading days before the interest payment date.

Alkermes will be able to force conversion of the new notes if the stock trades at 150% of the conversion price for 20 out of 30 trading days.

If a forced conversion occurs before December 2004 holders will receive an additional two years of interest. Similarly if holders voluntarily convert before December 2004 they will receive an additional two years of interest.

The existing notes convert at $67.75 for a ratio of 14.76. The $200 million issue was sold at par in March 2000 with a 12% initial conversion premium.

Proceeds from the $60 million of new notes will be used for general corporate purposes, including research, development and clinical trials and for manufacturing facilities and equipment.

U.S. Bancorp Piper Jaffray Inc. was dealer manager for the exchange offer and placement agent for the cash offer. State Street Bank and Trust Co. was exchange agent. The information agent was Georgeson Shareholder Communications Inc.

Amdocs bought back $54.946 million convertibles in fourth quarter

New York, Dec. 31 - Amdocs Ltd. said it bought back $54.946 million principal amount of its 2% convertible notes due 2008 during the fourth quarter.

The repurchases were at an average price of $890 per $1,000 principal amount, resulting in a gain of $6.012 million. The transactions followed authorization from the company's directors on July 23 to buy back notes.

The St. Louis company said in a filing with the Securities and Exchange Commission that it used available funds for the fourth quarter repurchases as it will for any future repurchases.

At Sept. 30, there were $445.054 million principal amount of the notes outstanding.

PerkinElmer buys back $378.7 million convertibles in tender

New York, Dec. 31 - PerkinElmer, Inc. said it accepted $378.70975 million principal amount of its zero-coupon convertible debentures due Aug. 7, 2020 for payment in its cash tender offer, 52% of the total outstanding.

The Boston technology company will pay a total of $205,593,949.08 for the tendered securities, a price of $542.88 per $1,000 principal amount at maturity.

The tender expired at midnight ET on Dec. 27.

PerkinElmer said completion of the tender for the convertibles is the final step in its refinancing plan announced in October.

As previously announced, the tender price is made up of the original issue price of $499.60 plus accrued original issue discount of $43.28.

Dealer manager for the offer was Merrill Lynch & Co. and the information agent was D.F. King & Co., Inc.

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