Pharming cuts convertible debt to €10.9 million in conversion offer

New York, Oct. 8 - Pharming Group NV said it completed its conversion offer for its 6.875% convertible bonds due 2012, reducing the convertible debt to €10.9 from €35.8 million.

The company issued 29.38 million shares and €3.74 million of cash.

Pharming had commitments from holders to convert 70% of the bonds.

"We initially aimed at removing 60% of our outstanding convertible debt from our balance sheet. We are very pleased that we now have exceeded our goal and removed 70% of this debt," said Sijmen de Vries, Pharming's chief executive officer, in a news release.

"With the cash for this transaction funded by existing shareholders, we have significantly strengthened our balance sheet without using a substantial amount of our cash reserved for our ongoing operations.

"We continue to work on further improvement of our financial position. The reduction of our debt represents a pivotal first step to get a solid foundation from which we can proceed now to unlock the value of our key assets such as Rhucin."

Pharming said holders can still participate up until the expiration of the offer on Oct. 13.

On Sept. 30, the company said it was extending the offer from the original expiration of Sept. 29 at the request of some bondholders and for the purpose of completing the logistics of the applications for conversion.

The offer had a minimum participation threshold of 60% of the outstanding convertibles.

For each €50,000 principal amount of convertibles, the company is offering €7,500 in cash and 59,000 shares.

The company plans to fund the cash portion of the offer with existing cash balances and the proceeds of private placements with existing shareholders and from enhanced calls under the existing standby equity distribution agreement with Yorkville Advisors.

Pharming is a biotechnology company based in Leiden, the Netherlands.

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