Shire holders do not exercise put on $1.1 billion 2.75% convertibles

By Toni Weeks

San Diego, May 9 - Shire plc said that holders of the company's $1.1 billion of 2.75% convertible bonds due 2014 did not choose to exercise the put option on the notes by the April 9 deadline, according to a 10-Q filing with the Securities and Exchange Commission.

The bonds were putable at par plus accrued interest on May 9 or after a change of control. They are now due on the final maturity date.

Shire said on Feb. 23 that it did not expect holders to exercise the put option, as the bonds were trading above par on Feb. 21. The company's shares closed at 2,248p (London: SHP) on Feb. 22.

As previously reported, the bonds are callable at par plus accrued interest (i) at any time after May 23 if the value of the common shares underlying each $100,000 principal amount of bonds would exceed $130,000 on at least 20 out of 30 consecutive dealing days or (ii) at any time once 85% or more of the original bond issue has been converted, purchased and canceled or redeemed.

The company also said that its balance sheet includes $879.4 million of cash and cash equivalents at March 31 and that substantially all of its debt relates to the 2.75% convertible bonds due 2014.

Shire is a Basingstoke, England-based pharmaceutical company.

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