>>BRISBANE, Calif., July 15 /PRNewswire-FirstCall/ -- InterMune, Inc. (Nasdaq: ITMN - News) today announced that it has successfully completed the repurchase of all of its remaining 5.75 percent convertible subordinated notes, totaling $97 million, due July 15, 2006.
The Company will pay approximately $102.6 million, which includes accrued interest of $2.8 million and a premium of $2.8 million. The Company will take a charge in the third quarter of 2004 of approximately $4.1 million, which includes the premium of $2.8 million and a non-cash charge totaling $1.3 million for the acceleration of the deferred issuance costs associated with these notes.
"This repurchase completes the process begun in February of removing from our balance sheet the 5.75 percent notes that would have come due in mid-2006. We have replaced these notes with more favorable 0.25 percent senior convertible notes that are due in 2011; well after the completion date of the major clinical trials for our existing pipeline. Beyond the strategic value of this transaction, InterMune will save approximately $8.4 million per year in interest payments as a result of the repurchase," said Dan Welch, InterMune's President and Chief Executive Officer.<<
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Cheers, Tuck |
