Vivus buys back $60 million convertibles from Athyrium at discount

By Susanna Moon

Chicago, May 1 – Vivus, Inc. plans to repurchase $60 million of its outstanding convertible notes due 2020 held by funds managed by Athyrium Capital Management.

Vivus will buy back the convertibles from the purchaser at a price of $51 million using proceeds of new notes.

The company entered into a purchase agreement on April 30 with affiliates of Athyrium for up to $110 million of 10 3/8% senior secured notes due 2024, according to an 8-K filing with the Securities and Exchange Commission.

Vivus may issue up to another $10 million of 10 3/8% senior secured notes due 2024 at the company’s option within 12 months of the initial issue date, the filing noted.

The notes will be interest-only for the first three years, according to a company announcement.

Mountain View, Calif.-based Vivus is a pharmaceutical company focused on treatments for obesity and sexual dysfunction.

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