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Auxilium Pharmaceuticals Announces Issuance of $350.0M of 1.50% Convertible Senior Notes Due 2018


Auxilium Pharmaceuticals (Nasdaq: AUXL), a specialty biopharmaceutical company ("Auxilium"), today announced the closing of its previously announced offering of 1.50% Convertible Senior Notes due 2018 (the "Convertible Notes"). Auxilium issued $350.0 million aggregate principal amount of Convertible Notes, which included $25.0 million aggregate principal amount of Convertible Notes issued pursuant to the exercise in full by the underwriters of their option to purchase additional Convertible Notes, in an offering (the "Offering") registered under the Securities Act of 1933, as amended (the "Securities Act").

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The Convertible Notes will pay interest semi-annually at a rate of 1.50% per annum on January 15 and July 15, commencing July 15, 2013. The Convertible Notes are convertible, at the holder's option at an initial conversion rate of 41.3770 shares of Auxilium's common stock per $1,000 principal amount of Convertible Notes, subject to adjustment in certain circumstances. Prior to January 15, 2018, the Convertible Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, will be convertible at any time until the second scheduled trading day immediately preceding the maturity date. Upon conversion, Auxilium will pay or deliver, as the case may be, shares of Auxilium's common stock, cash or a combination thereof at Auxilium's election.

The Convertible Notes are general senior unsecured obligations of Auxilium.

The net proceeds from the Offering were approximately $338.7 million after deducting underwriters' discounts and commissions and estimated offering expenses. Auxilium used approximately $28.5 million of the net proceeds from the Offering to pay the cost of the note hedge transactions described below (after such cost was partially offset by the proceeds from the sale of the warrants, as described below) and intends to use the remainder of the net proceeds from the Offering for general corporate purposes, which may include the acquisition (including by merger, purchase, license or otherwise) of businesses, products, product rights or technologies.

Posted-In: News Financing


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