BioMarin issues shares, cash for $87 million of 2.5% convertibles

By Jennifer Chiou

New York, Nov. 9 - BioMarin Pharmaceutical Inc. announced that six holders of its 2.5% convertible senior subordinated notes due 2013 agreed to accept 5.25 million of the company's shares in exchange for $87 million of their holdings.

The notes make up about half of the outstanding amount of the convertibles.

BioMarin added that it agreed to make a $10.3 million cash payment to the holders as an inducement to convert the notes. The payment includes $5.4 million for accrued and future interest payments.

According to a news release, the notes were converted in accordance with the original terms of the securities at a conversion price of $16.58 per share. The company's shares closed at $25.74 apiece on Tuesday.

"This partial exchange allows us to reduce the amount of debt on our balance sheet to a level that is more in line with our cash balance while providing us with more flexibility to reacquire commercial rights to Aldurazyme if the opportunity arises," chief executive officer Jean-Jacques Bienaime said in the release.

BioMarin is biopharmaceutical company based in Novato, Calif.

© 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.