Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Abgenix, Inc. (ABGX) -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (398)	12/16/2004 2:18:31 AM
From: Icebrg	Read Replies (1) \| Respond to of 590

Abgenix Announces Pricing of Private Offering of Convertible Senior Notes Wednesday December 15, 10:10 pm ET [There must have been a lot of willing takers as the company went from (150+25) to (225+75). I wonder if the extra cash found will be used to increase the portion allocated to the early retirement of the 2007 debt?]. FREMONT, Calif.--(BUSINESS WIRE)--Dec. 15, 2004--Abgenix, Inc. (Nasdaq:ABGX - News) today announced it has priced its previously announced private placement under Rule 144A in an aggregate principal amount of $225 million of its Convertible Senior Notes due 2011. In addition, the company has granted the initial purchasers of the notes an option to purchase up to an additional $75 million principal amount of notes. The notes will be convertible into common stock of the company at a conversion rate of 78.0153 shares per $1,000 principal amount of notes (representing an initial conversion price of approximately $12.82 per share) and will accrue interest at an annual rate of 1.75 percent. The notes will mature in December 2011 and will be redeemable at the company's option beginning in December 2009. The transaction is expected to close on December 21, 2004. The closing is subject to customary closing conditions. 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.