PharmaNet looks for ways to retire convertibles after majority rejects exchange offer

By Lisa Kerner

Charlotte, N.C., Dec. 19 - PharmaNet Development Group, Inc. said it is exploring alternatives to retire its convertible notes.

In November, PharmaNet announced an offer to exchange its $143.75 million of 2.25% convertible senior notes due 2024 for $115 million of 8% convertible senior notes due 2014 and cash.

For each $1,000 principal amount of notes accepted, PharmaNet will issue $800 principal amount of new notes and $250 in cash, it was previously reported.

Current holders of a majority of total principal amount of the convertibles do not plan to tender them in PharmaNet's exchange offer and other holders sold their notes in the open market, according to a company news release.

Originally, holders of about 57% of the notes had been expected to participate in the exchange offer, which terminated at 11:59 p.m. ET on Thursday, the company said.

PharmaNet is a Princeton, N.J.-based drug development company.

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