NPS Pharmaceuticals begins tender offer for 3% convertibles

By Angela McDaniels

Seattle, Sept. 6 - NPS Pharmaceuticals, Inc. has begun a cash tender offer for its 3% convertible notes due 2008, according to a company news release.

The company will pay $982.50 for each $1,000 principal amount of notes tendered, plus accrued interest up to but excluding the purchase date.

The tender offer will expire at midnight ET on Oct. 4.

NPS said it is purchasing the notes to reduce outstanding debt and to reduce interest expense.

The tender offer will be funded from the proceeds of the company's recently completed offering of $50 million of 5.75% convertible notes due 2014, a $100 million private placement of secured 15½% Sensipar B bonds due 2017 completed by its subsidiary and a $50 million up-front payment received from Drug Royalty LP3 as part of the NPS' sale of its right to receive royalty payments on sales of Preotact.

Jefferies & Co., Inc. is dealer manager for the tender offer, and D.F. King & Co., Inc. (212 269-5550 or 888 644-5854) is information agent.

NPS is a biopharmaceutical company based in Parsippany, N.J.

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