MedImmune calls 1% convertibles

By Susanna Moon

Chicago, June 27 - MedImmune, Inc. plans to redeem its $10.3 million of outstanding 1% convertible senior notes due 2023, according to an 8-K filing with the Securities and Exchange Commission.

The notes will be redeemed for $1,000.69 per $1,000 principal amount of notes, which is equal to the principal amount plus accrued interest up to but excluding the redemption date.

The redemption date is Aug. 9.

Holders also can convert the notes into cash equal to $850.69 per $1,000 principal amount.

As previously announced on June 18, MedImmune merged with an indirect subsidiary of AstraZeneca, and MedImmune became an indirect subsidiary of AstraZeneca.

As a result of the merger and according to the indenture, noteholders' right to convert notes into common stock changed. Holders can convert notes into the cash amount they would have received if the notes were converted into shares of MedImmune common stock just before the merger.

Therefore the conversion rate is 14.6671 shares of MedImmune common stock per $1,000 principal amount of notes on June 18, multiplied by the $58.00 per share paid to holders of MedImmune's common stock in the merger.

Notes may be converted at any time before 5 p.m. ET Aug. 8, the business day before the redemption date.

MedImmune is a Gaithersburg, Md.-based pharmaceutical company.

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