Cell Genesys extends Dutch auction tender offer for 3.125% convertibles, ups minimum price

By Angela McDaniels

Tacoma, Wash., Dec. 2 - Cell Genesys, Inc. said it extended the modified Dutch auction tender offer for a portion of its $118.7 million outstanding 3.125% convertible senior notes due 2011 to 5 p.m. ET on Dec. 16 from Dec. 9.

The company also increased the minimum bid offering price to $340 from $320 per $1,000 principal amount, according to a company news release.

Cell Genesys will now offer to purchase up to $80 million, or 67%, of the convertibles at a price not greater than $400 nor less than $340. Holders will also receive accrued interest up to but excluding the purchase date.

The tender offer began on Nov. 7 and is not conditioned on any minimum amount being tendered. It will be funded with available cash on hand.

Cell Genesys said it is conducting the tender offer in order to reduce the principal amount of its outstanding debt and to provide an opportunity to convertible holders to gain liquidity they may not otherwise have. The company believes that reducing its outstanding debt will provide it with increased flexibility to explore strategic alternatives.

The dealer manager is Lazard Capital Markets LLC. The depositary is U.S. Bank NA, and the information agent is Georgeson Inc. (866 206-4938 or call collect at 212 440-9800).

Cell Genesys is a biotechnology company based in South San Francisco, Calif.

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