Cephalon Announces Exercise of $150 Million Option On Convertible Subordinated Notes
Thursday June 12, 10:35 am ET
WEST CHESTER, Pa., June 12 /PRNewswire-FirstCall/ -- Cephalon, Inc. (Nasdaq: CEPH - News) announced today that the initial purchasers of its previously announced $600 million aggregate principal amount of Zero Coupon Convertible Subordinated Notes have exercised in full their option to purchase $150 million of additional notes, bringing the total amount of the notes sold to $750 million. The offering of notes was issued in two tranches, the first of which is putable on June 15, 2008 and the second of which is putable on June 15, 2010. The offering closed on Wednesday, June 11, 2003.
The notes are subordinate to existing and future senior indebtedness of Cephalon. The company plans to use the net proceeds from the offering for the redemption of all of the Company's outstanding 5-1/4 percent Convertible Subordinated Notes due 2006, for the purchase from Credit Suisse First Boston International ("CSFBI") of a convertible note hedge strategy with respect to Cephalon's common stock, and other corporate purposes, including working capital and possible acquisitions of companies, products or technologies, and repurchase, redemption or retirement of other existing indebtedness. |
