Alkermes to force conversion of 2.5% convertibles on June 15

By Jennifer Chiou

New York, May 22 - Alkermes, Inc. announced it is exercising its right to automatically convert all of its 2.5% convertible subordinated notes due 2023 into 9,025,271 shares on June 15.

The notes will be converted at a rate of 72.20217 Alkermes shares per $1,000 principal amount of notes.

Because the notes are being converted prior to Sept. 1, the Cambridge, Mass., pharmaceutical company said it will also pay $12.50 per $1,000 principal amount in cash for interest to Sept. 1.

The company said that under the terms of the notes, it has the right to elect to automatically convert the notes when the closing price of Alkermes stock exceeds $20.78 for 20 trading days during any 30-day trading period.

"This conversion further strengthens Alkermes' financial profile by reducing our debt and future interest expenses," James Frates, chief financial officer, said in a news release.

"Separately, we are taking this opportunity to begin repurchasing our stock at current trading levels, while we continue to focus on key initiatives that can create long-term value for shareholders moving forward."

U.S. Bank NA is the trustee.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.