ViroPharma plans exchange for 6% convertibles, to sell $25 million new convertibles

New York, March 19 - ViroPharma Inc. said it plans to offer new convertibles in exchange for its existing 6% convertible subordinated notes due 2007 and will also offer for cash $25 million of the new securities.

Under the terms of the exchange, ViroPharma will offer up to $99.1225 million principal amount of 6% convertible senior Plus Cash Notes in exchange for up to all its existing $127.9 million principal amount of 6% convertibles.

ViroPharma said the exchange is intended to extend the maturity of its debt by more than two years, which, the company said, would be "more consistent with its current business plans."

The exchange will also "significantly" reduce the conversion price of the notes.

The extra cash will provide resources to execute the business and operational plans.

Piper Jaffray & Co. is dealer manager for the exchange and placement agent for the cash offer.

ViroPharma, an Exton, Pa. pharmaceutical company, said it has filed a registration statement with the Securities and Exchange Commission but it has not yet become effective.

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