Angiotech executes plan of arrangement, exchanges 7¾% notes, floaters

By Angela McDaniels

Tacoma, Wash., May 12 - Angiotech Pharmaceuticals, Inc. said it successfully implemented its Companies' Creditors Arrangement Act plan of arrangement, which was approved by the Supreme Court of British Columbia on April 6.

As a result, the company's $250 million of 7¾% senior subordinated notes due 2014 have been canceled in exchange for new common shares of Angiotech, according to a company news release.

In addition, the company completed the exchange offer and consent solicitation for its floating-rate notes senior due 2013, which expired at midnight ET on May 12.

A total of C$324,975,000 principal amount, or 99.99%, of the floating-rate notes were tendered.

Holders who exchanged will receive new floating-rate senior notes due 2013. The interest rate is Libor plus 375 basis points with a 1.25% Libor floor.

Angiotech received enough consents to amend the indenture of the existing floating-rate notes to eliminate substantially all of the covenants and some events of default.

The company said that it has substantially reduced its long-term debt obligations and strengthened its balance sheet and liquidity outlook.

Angiotech, a Vancouver, B.C., specialty pharmaceutical and medical device company, filed for bankruptcy on Jan. 30, 2010 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 15 case number is 11-10269.

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