Merrimack gets tenders for nearly all 4.5% convertibles due 2020

By Susanna Moon

Chicago, Nov. 13 – Merrimack Pharmaceuticals, Inc. received tenders for $24,975,000 principal amount, or 99.78%, of its $25,031,000 4.5% convertible senior notes due 2020.

The company has accepted for purchase all of the notes tendered in the offer, according to an 8-K filing with the Securities and Exchange Commission.

After settlement, there is $56,000 principal amount of the notes left outstanding.

As announced Oct. 13, Merrimack was tendering for the convertibles in connection with a settlement agreement at a price of 90% of par until 12:01 a.m. ET on Nov. 10.

Holders also will receive accrued interest to but excluding the purchase date.

The outstanding amount at the start of the offer reflected the purchase of the notes from the settlement under an agreement Oct. 6 with Wolverine Flagship Fund Trading Ltd., 1992 MSF International Ltd. and 1992 Tactical Credit Master Fund, LP, or the settlement noteholders, and Wells Fargo Bank, NA as trustee to resolve a lawsuit pending in Delaware.

Under the settlement agreement, the company purchased $35.76 million principal amount of notes owned by the settlement noteholders for $32,528,190 in cash, which represents $900 per $1,000 principal amount plus accrued interest through Oct. 2.

The information agent is Global Bondholder Services Corp. (212 430-3774 or 866 470-4200).

Merrimack is a Cambridge, Mass., biotechnology company.

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