Cell Therapeutics board OKs modified Dutch auction offer for five series of convertibles

By Jennifer Chiou

New York, Dec. 5 - Cell Therapeutics, Inc. announced that its board of directors has authorized a modified Dutch auction tender offer to purchase a portion or all of five series of the following convertible notes: 4% convertible senior subordinated notes due 2010, 5.75% convertible senior notes due 2011, 6.75% convertible senior notes due 2010, 7.5% convertible senior notes due 2011 and 9% convertible senior notes due 2012.

The company said it expects to use up to $10 million for the tender from cash currently on hand, cash expected to be received in connection with the closing of the recent collaboration with Spectrum Pharmaceuticals, and/or cash to be received in connection with a second closing of a sale of notes to a single institutional investor.

There is $124 million of notes currently outstanding.

Under the offer, Cell Therapeutics would offer to buy notes at a price expected to be no greater than $80 or less than $50 per $1,000 principal amount of notes, plus accrued and unpaid interest.

Cell Therapeutics is a Seattle-based biopharmaceutical company developing treatments for cancer.

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