ViroPharma buys back $29 million 6% convertibles

New York, May 11 - ViroPharma Inc. said it bought back $29 million principal amount of its 6% convertible subordinated notes due March 2007.

The Exton, Pa., pharmaceuticals company paid $27.9 million for the securities.

Following the buyback, ViroPharma has $98.9 million principal amount of the 6% convertibles due 2007 outstanding.

"Since our acquisition of Vancocin Pulvules, our focus has been on executing in all areas of our business and finding ways to bring additional value to the company and our shareholders; one of the most important efforts has been toward identifying ways to improve our capital structure," said Vincent Milano, ViroPharma's chief financial officer, in a news release.

"Thanks to the strong sales performance of Vancocin, we are being proactive in our efforts to reduce the outstanding amount of our 2007 convertible subordinated notes.

"As we have said in the past, the acquisition opened the door to positive opportunities to manage our debt that did not exist for us in the past. This first step - the repurchase of 23% of the outstanding 2007 convertible subordinated notes - marks a very good start to the effort."

ViroPharma funded the buyback using the $11.8 million of proceeds from its April issuance of additional 6% convertible notes due 2009 and cash flow from the business.

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