New issue: Vertex to generate $120 million from secured notes

By Lisa Kerner

Charlotte, N.C., Sept. 30 - Vertex Pharmaceuticals Inc. said it will receive approximately $120 million in cash for the issuance of secured notes.

According to Vertex, the notes are secured by $155 million in future telaprevir milestone payments that the company is eligible to receive from Janssen Pharmaceutica for the filing, approval and launch of telaprevir in Europe.

The notes are payable on Oct. 31, 2012, or as the milestone payments securing the notes are earned prior to that date, in the total amount of $155 million.

Vertex said the notes were issued at a discount and do not pay current interest prior to maturity.

Morgan Stanley advised Vertex, a Cambridge, Mass.-based drug maker, on the transaction.

Telaprevir is a hepatitis C virus (HCV) protease inhibitor.

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