Isolagen cancels exchange offer for 3.5% convertibles, offering of new convertibles

By Angela McDaniels

Seattle, Aug. 15 - Isolagen, Inc. will not proceed with its planned exchange offer for its $90 million of 3.5% convertible subordinated notes due 2024, according to a company news release.

On Wednesday, Isolagen said the cancellation is in the best interests of the company and its shareholders.

In an email, the company stated the main reason for dropping the proposed exchange and new convertible note offering was the current uncertain market conditions.

Under the planned offer, holders could exchange their notes for an equal amount of new 3.5% convertible senior notes due 2024. The company also planned to sell up to $30 million of additional new 3.5% convertibles.

Plans for the offer were announced on July 11 and, at the time, Isolagen said the exchange and new offering would reform its capital structure and allow it to better execute its business strategy.

Isolagen also registered to sell up $24,300,001 of common stock when it registered the exchange offer with the Securities and Exchange Commission. The company will proceed with the stock sale and said it obtained commitments for 6.76 million shares at $2.04 each from institutional investors. The sale is expected to close on Friday and yield proceeds of $13.8 million.

Thomas Weisel Partners LLC (888 627-6373) was the dealer manager for the exchange offer, and Georgeson Inc. (888 549-6633) was the information agent.

Isolagen is based in Exton, Pa., and specializes in autologous cellular therapies for soft and hard tissue regeneration.

© 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.