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Vertex Pharmaceuticals Announces Agreements to Exchange Common Stock for $58.3 Million of its Convertible Senior Subordinated Notes Due 2011
Vertex Pharmaceuticals Announces Agreements to Exchange Common Stock for $58.3 Million of its Convertible Senior Subordinated Notes Due 2011.
About this update from Vortex Energy Corp.
[{"type":"text","content":"\n\n\n\n\nCAMBRIDGE, Mass., Aug. 3 /CNW/ -- Vertex Pharmaceuticals\nIncorporated (Nasdaq: VRTX) announced today that three holders of its 5.75%\nConvertible Senior Subordinated Notes due 2011 have agreed to exchange\napproximately $58.3 million in aggregate principal amount of those notes held\nby them for approximately 4.1 million shares of the Company's common stock,\nwhich is approximately 159,000 shares more than the number of shares into\nwhich the bonds were convertible under their original terms. The additional\nshares largely relate to unpaid interest through February 2007, when the notes\nwould have been callable by the Company.\nThe Company anticipates that the exchanges will be completed by the close\nof business on August 9, 2006. Upon completion of the exchanges, the\naggregate principal amount of the Company's 5.75% Convertible Senior\nSubordinated Notes due 2011 will be reduced to approximately $59.6 million.\nUpon issuance of the common stock in exchange for the notes, the Company will\nhave approximately 115 million shares of common stock outstanding.\nThe Company intends to file a registration statement in August 2006\ncovering the resale of approximately 136,500 shares of the common stock issued\nin the exchanges.\nThe Company expects to incur a non-cash charge of approximately $5.0\nmillion as a result of the exchanges. This charge is related to the\nincremental shares to be issued in the transaction over the number that would\nhave been issued upon conversion of the notes under their original terms, and\nwill be reported in the Company's third quarter 2006 financial results.\nThis announcement is neither an offer to exchange nor a solicitation of an\noffer to exchange any of these securities. The exchanges are exempt from\nregistration under Section 3(a)(9) of the Securities Act of 1933.\n\nAbout Vertex\nVertex Pharmaceuticals Incorporated is a global biotechnology company\ncommitted to the discovery and development of breakthrough small molecule\ndrugs for serious diseases. The Company's strategy is to commercialize its\nproducts both independently and in collaboration with major pharmaceutical\ncompanies. Vertex's product pipeline is principally focused on viral\ndiseases, inflammation, autoimmune diseases and cancer. Vertex co-discovered\nthe HIV protease inhibitor, Lexiva, with GlaxoSmithKline.\nLexiva i...