Xcyte files to sell up to $17.25 million of convertible preferreds

New York, Oct. 7 - Xcyte Therapies Inc. filed an offering of up to $17.25 million of convertible exchangeable preferred stock with the Securities and Exchange Commission.

The deal will be 1.5 million shares with a liquidation preference of $10 per share plus an over-allotment option of 2.25 million shares, according to the S-1 filing.

Piper Jaffray is bookrunner for the offering with JMP Securities as joint lead manager.

Xcyte, a Seattle-based biotechnology company, will use proceeds for working capital and general corporate purposes.

The company will be able to force conversion of the preferreds if its stock trades above 150% of the conversion price for 20 out of 30 trading days.

For both voluntary and forced conversions, there is a dividend make-whole through 2007.

The preferreds are perpetual but are callable from 2007 onwards.

Xcyte also has the option of exchanging the preferreds for convertible subordinated debentures with a 25-year maturity from 2005 onwards.

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