Cephalon exchanges $100 million of 2% convertible notes due 2015

By Laura Lutz

Washington, Dec. 20 - Cephalon, Inc. exchanged $100 million principal amount of its 2% convertible senior subordinated notes due June 1, 2015 for $73.7 million in cash and about 1.3 million shares of its common stock, according to an 8-K filing with the Securities and Exchange Commission.

The company reported that the exchange was made with a single noteholder.

The company also terminated the portion of its convertible noted hedge confirmation and warrant agreements with Deutsche Bank AG that related to the notes. As a result, the company received about 1.2 million shares of its stock from Deutsche Bank.

As previously reported, Cephalon on Dec. 18 exchanged $337 million of its zero-coupon convertible subordinated notes first putable in 2008 and 2010 for $101.6 million in cash and 4.3 million common shares, adjusted for shares that the company after it canceled the portion of the convertible note hedge and warrant agreements associated with those notes.

Cephalon is a biopharmaceutical company with headquarters in Frazer, Pa.

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