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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: rkrw who wrote (10260)	2/17/2009 11:44:16 AM
From: John Metcalf	1 Recommendation Read Replies (1) \| Respond to of 10280

"Anyone with any guesses why they would be buying these back? " The 2024 notes can be put to the company for cash or shares on 10/15/09. Since the conversion price of $67.20 is 4X the current share price, the company expects to pay in cash. In August and September of '08, they bought back $31.3 mm of the issue at 92-93% of par. This tender offer is at 97% for about 85% of the remainder of the 2024 notes. There are also convertible notes of $148mm due in 2010. Combined with $72mm still outstanding of the 24's, total remaining indebtedness would roughly equal the cost reductions just announced. Cash and ST investments totalled $765mm at 12/08, just a little more than total cv debt. Short story is that the company could be debt-free next year, if all targets are met and notes are tendered up to the company's offer.