Vertex Pharmaceuticals to issue 4.1 million shares for $58.3 million 5.75% convertibles

By Jennifer Chiou

New York, Aug. 3 - Vertex Pharmaceuticals Inc. said it entered agreements with three noteholders to issue 4.1 million shares in exchange for $58.3 million of its 5.75% convertible senior subordinated notes due 2011.

The company said that the 4.1 million shares are 159,000 shares more than the number of shares into which the bonds were convertible under their original terms.

Vertex said that the additional shares largely relate to unpaid interest through February 2007, when the notes would have been callable by the company.

The company said it anticipates that the exchanges will be completed by the close of business on Aug. 9.

After the exchanges, Vertex said there will be $59.6 million of notes outstanding.

Vertex is a Cambridge, Mass., biotechnology company that develops small molecule drugs for viral diseases, inflammation, autoimmune diseases and cancer.

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