Basilea begins partial buyback of convertibles due 2022

By Rebecca Melvin

New York, July 10 – Basilea Pharmaceutica Ltd. announced the start of the offer period of its partial repurchase offer for up to CHF 110 million of convertibles bonds due 2022 (ISIN: CH0305398148), according to a company news release.

The offer is dependent on at least CHF 90 million principal amount of the notes being tendered.

The repurchase offer price is 100.5% of par plus accrued and unpaid interest.

The tender period begins on Friday and expires at 11 a.m. ET on July 16, with settlement expected to occur on July 28.

The company plans to fund the cash tender using the proceeds from its new CHF 125 million issue of seven-year convertibles. The final allocation of the new bonds will depend on the successful repurchase under the buyback of the 2022 bonds. The company may claw back the new bond deal size by up to CHF 25 million, depending on how many 2022 bonds are repurchased.

The repurchase offer is dependent on a delta placement of existing shares resulting in a reference price and the conversion price of the new bonds that is above CHF 46.993.

The aim of the transactions is to shift the maturity of about 50% of the total debt outstanding significantly beyond 2022 without significantly changing the total amount of debt outstanding, according to the release.

Basilea Pharmaceutica is a Basel, Switzerland-based commercial-stage biopharmaceutical company.

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