Chattem tenders for all of its 2% convertibles, 1.625% convertibles

By Jennifer Chiou

New York, Feb. 25 - Chattem, Inc. said it launched a tender offer for all of its $8 million of 2% convertible senior notes due 2013 and $38.3 million of 1.625% convertible senior notes due 2014.

The offer ends at 5 p.m. ET on March 25.

The company is offering par plus accrued interest.

On Feb. 9, the company announced that the notes were convertible because of a fundamental change as a result of the completion of the tender offer begun by River Acquisition Corp. on Jan. 11 for all outstanding common shares of Chattem for $93.50 per share under the merger agreement dated Dec. 20 among Chattem, sanofi-aventis SA and River Acquisition Corp.

Holders may convert their notes at any time before the close of business on the business day immediately preceding the 45th day after the fundamental change effective date, as previously noted. Chattem stock (Nasdaq: CHTT) closed at $93.32 on Feb. 8 and closed at $93.50 on Feb. 24.

A subsidiary of sanofi-aventis began a $93.50-per-share tender offer for Chattem's stock on Jan. 11. It was scheduled to expire at midnight ET on Feb. 8.

The 2% convertibles and 1.625% convertibles have conversion prices of $58.92 and $73.20, respectively.

The trustee, paying agent and conversion agent for the tender offer is U.S. Bank NA (800 934-6802).

Chattanooga, Tenn.-based Chattem makes branded consumer health-care products, toiletries and dietary supplements.

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