Oscient to issue $7.44 million 12.5% convertibles due 2011 in exchange for 5% convertibles

By Susanna Moon

Chicago, May 1 - Oscient Pharmaceuticals Corp. said that holders of its 5% convertible promissory notes due 2009 exchanged their notes on April 30 into the company's 12.5% convertible guaranteed senior notes due 2011, according to an 8-K filing with the Securities and Exchange Commission.

The holders included funds associated with MPM Bioventures Parallel Fund LP, MPM Asset Management Investors 1998 LLC and BB Bioventures LP.

In the exchange, the company is issuing $7.44 million principal amount of its 12.5% notes.

There is now $1.7 million of principal and accrued interest in the 5% convertibles outstanding, which are due on Dec. 1, 2009.

The company said it does not believe it will have sufficient cash to repay the remaining 5% notes when due and continue current operations unless it is able to raise additional capital, refinance or amend the terms of the notes.

If the company is unable to obtain adequate financing, it may have to take other measures to significantly reduce expenses, which will have a material adverse effect on its business and the company may seek bankruptcy protection, the release said.

Oscient is a Waltham, Mass.-based pharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.