CV Therapeutics Announces Concurrent Public Offerings of Common Stock and Convertible Senior Subordinated Notes
Wednesday June 22, 4:02 pm ET
PALO ALTO, Calif., June 22 /PRNewswire-FirstCall/ -- CV Therapeutics, Inc. (Nasdaq: CVTX - News) announced today that it is offering to sell, subject to market and other conditions, 6,000,000 shares of its common stock in a public offering. All of the shares are being offered by CV Therapeutics, Inc. The Company has granted the underwriters a 30-day option to purchase up to an additional 900,000 shares of common stock to cover over-allotments.
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Concurrently with the offering of common stock, the Company is offering, subject to market and other conditions, $100 million aggregate principal amount of convertible senior subordinated notes due 2013 in a public offering. The Company has granted the underwriters a 30-day option to purchase up to an additional $12.5 million of notes to cover over-allotments.
The common stock offering and convertible note offering are being conducted as separate public offerings by means of separate prospectus supplements, and the offerings are not contingent upon each other.
Lehman Brothers and Merrill Lynch & Co., Inc. are acting as joint lead managers and joint bookrunners of each of the public offerings. Piper Jaffray, SG Cowen & Co., and First Albany Capital are acting as co-managers of the common stock offering, and Citigroup and Deutsche Bank Securities are acting as co-managers of the convertible debt offering. Copies of the prospectus supplements can be obtained from Lehman Brothers' prospectus department c/o ADP Integrated Financial Services, 1155 Long Island Avenue, Edgewood, NY 11717, or email monica_castillo@adp.com, or Merrill Lynch's prospectus department at 4 World Financial Center, New York, NY 10080, (212) 449-1000. Information about these offerings is available in the prospectus supplements filed with the Securities and Exchange Commission.
The Company intends to use a portion of the net proceeds from the convertible note offering to repurchase some or all of the outstanding $79.6 million principal amount of its 4 3/4% convertible subordinated notes due 2007. The Company will also use a portion of the net proceeds from the convertible note offering to fund an escrow account to provide security for the first six scheduled interest payments on the notes. The Company intends to use the remaining net proceeds from the offerings for general corporate purposes, which may include funding research, development and product manufacturing, product development, including preclinical and clinical trials, preparation and filing of new drug applications and other marketing approval applications, product commercialization, increasing its working capital, reducing indebtedness, acquisitions or investments in businesses, products or technologies that are complementary to its own, and capital expenditures. |
