Hmmmmm, convertible security issued
QLT releases terms of $150-million (U.S.) note financing
QLT Inc QLT
Shares issued 68,840,852 Aug 11 close $18.91
Tue 12 Aug 2003 News Release
Ms. Tamara Hicks reports
QLT ANNOUNCES TERMS OF US $150 MILLION U.S. PRIVATE CONVERTIBLE SENIOR
NOTES OFFERING
QLT has agreed to issue $150-million (U.S.) of 3-per-cent convertible
senior notes due 2023. The initial purchasers of the notes have an option
to purchase up to an additional $22.5-million (U.S.) total principal amount
of notes on the same terms. The notes will be bear interest at 3 per cent
per year, payable semi-annually. The closing of this transaction is
expected to occur on Aug. 15, 2003, subject to customary conditions.
Under certain circumstances, the convertible senior notes will be
convertible into QLT common shares at an initial conversion rate (subject
to adjustment) of 56.1892 common shares per $1,000 (U.S.) total principal
amount of notes. This results in an initial conversion price of
approximately $17.80 (U.S.) per share, representing a conversion premium of
30 per cent over the closing bid price of $13.69 (U.S.) of QLT common
shares on the Nasdaq National Market on Aug. 11, 2003.
On or after Sept. 15, 2008, QLT may at its option redeem all or a portion
of the convertible senior notes for cash at a redemption price equal to 100
per cent of the principal amount of the notes to be redeemed, plus any
accrued and unpaid interest. In addition, on each of Sept. 15, 2008, Sept.
15, 2013, and Sept. 15, 2018, holders may require QLT to purchase all or a
portion of their notes for cash at 100 per cent of the principal amount of
the notes to be purchased, plus any accrued and unpaid interest.
QLT intends to use the net proceeds for working capital and other general
corporate purposes, including potential acquisitions or investment in
businesses, products or technologies. In addition, QLT intends to use a
portion of the net proceeds to repurchase QLT common shares on the open
market in connection with a share repurchase program announced earlier
today.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
(c) Copyright 2003 Canjex Publishing Ltd. stockwatch.com |
