Abgenix Announces Proposed Private Offering of Convertible Senior Notes
Tuesday December 14, 4:05 pm ET
FREMONT, Calif.--(BUSINESS WIRE)--Dec. 14, 2004--Abgenix, Inc. (Nasdaq:ABGX - News) today announced that it intends, subject to market and other conditions, to sell approximately $150 million principal amount of its Convertible Senior Notes due in 2011, through a private placement under Rule 144A of the Securities Act of 1933. Abgenix expects the terms of the offering to include an option for the initial purchasers of the offering to purchase up to an additional $25 million principal amount of notes. The offering will be made only to qualified institutional buyers, as defined in Rule 144A.
Abgenix intends to use a portion of the net proceeds of the offering from time to time to retire a portion of its outstanding Convertible Subordinated Notes due March 15, 2007. Abgenix expects to use the remaining proceeds of the offering for research and development, capital expenditures, working capital and other corporate purposes.
Note.: It will however not be enough to repay in full the 2007 debt, which is for USD 200 mio.
From 10K
In March 2002, we issued $200.0 million principal amount of convertible subordinated notes in a private placement. The notes are convertible into shares of our common stock at a conversion price of $27.58 per share subject to certain adjustments. The notes accrue interest at an annual rate of 3.5% and we are obligated to pay interest on March 15 and September 15 of each year. The notes will mature on March 15, 2007 and are redeemable at our option on or after March 20, 2005, or earlier if the price of our common stock exceeds specified levels. In addition, the holders of the notes may require us to repurchase the notes if we undergo a change in control. Proceeds from the sale of the notes, net of commissions payable to the initial purchasers of the notes but before subtracting other offering expenses payable by us, were $194.0 million. |
