Cell Therapeutics to retire all remaining 4% convertible notes

By Jennifer Chiou

New York, July 1 - Cell Therapeutics, Inc. announced that it has deposited $39.3 million in cash with trustee U.S. Bank NA to redeem and retire the remainder of its 4% convertible senior subordinated notes due 2010.

The amount will also cover accrued interest.

"We are pleased that with recent successful financings we were in a position to retire all of our notes with a maturity in 2010," chief executive officer James A. Bianco said in a news release.

"This should eliminate shareholder concerns over our ability to repay the notes with a maturity in 2010, and we will continue our focus on moving our products forward through the clinic and the regulatory approval process as expeditiously as possible."

In various announcements in May, the company had agreed to exchange 1,863,564 shares of common stock for $779,000 of the notes on one occasion in addition to up to 60 million shares in exchange for up to $30 million of the convertibles in the middle of the month. The company terminated those exchange agreements on May 23.

Cell Therapeutics is a Seattle-based biopharmaceutical company developing a portfolio of oncology products.

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