Verenium modifies 8% convertibles due 2012, lowers conversion price

By Devika Patel

Knoxville, Tenn., July 1 - Verenium Corp. amended its 8% convertible senior notes due April 1, 2012, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The company and the holders of $20.6 million, or 69.7%, of the notes agreed on Wednesday to lower the conversion price to $1.74 from $2.13, modify the anti-dilution protections from full ratchet to, in most cases, a version of broad-based weighted average and modify some covenants intended to provide Verenium with greater flexibility to engage in certain financing and other strategic transactions.

The amendment also clarified the provisions for interest and make-whole payments to be made in shares, and the holders agreed to relinquish certain rights related to conversions and payments made by the company prior to Wednesday.

The company's shares closed at $0.67 (Nasdaq: VRNM) on Wednesday.

There is $29.5 million of the notes outstanding.

Based in San Diego, Verenium is a developer of specialty enzymes used in alternative fuel, industrial, health and nutrition processes.

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