| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for Tenders 2007 > News item |
Axcan to redeem 4.25% convertibles
New York, May 10 - Axcan Pharma Inc. said it plans to redeem its $125 million of 4.25% convertible subordinated notes due April 2008.
The redemption price will be 100.85 plus accrued interest up to but excluding the redemption date.
The Mont-Saint-Hilaire, Quebec-based pharmaceutical company said it is required to give 30 business days' notice of the redemption and will do so "in the upcoming days."
Currently $125 million of the securities are outstanding.
When Axcan calls the notes, they will become convertible at $14.01 per share. Until the call is announced, the notes become convertible when its stock has traded above $15.41 for 20 consecutive trading days. Axcan stock closed at $17.36 Thursay.
"Axcan's stock continues to show strength and has been trading well above the conversion hurdle price of $15.41 under the contingent conversion feature of the notes for the last few weeks," said Frank Verwiel, president and chief executive officer of Axcan, in a news release.
"We believe that calling the notes at this time will allow us to reduce debt and strengthen our balance sheet. We will also be reducing the carrying cost associated with the interest expense on these notes."
"Given the company's strong cash position and cash flows, we believe that the company will remain in an excellent position to fully execute its long-term business development strategy, including future acquisitions of products, and/or companies, growing its R&D programs and meeting its other capital requirements."
Axcan said it expects most holders will choose to convert the notes ahead of the redemption. Any notes still outstanding will be repaid from available cash.
© 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.