ViroPharma to convert 6% convertibles on July 12

New York, July 5 - ViroPharma Inc. said it has delivered notice that it will exercise its right to automatically convert the remaining $15.35 million of its 6% convertible senior secured notes due October 2009 into 6.14 million shares on July 12.

Under the terms of the offering, ViroPharma may convert automatically up to 25% of the notes when its volume-weighted average stock price exceeds $3.75 per share for 20 trading days in any 30-day period. The conversion rate is 400 shares per $1,000 principal amount. Holders will also receive a make-whole payment in stock.

After the conversion, ViroPharma's Vancocin assets will be unencumbered and the company's outstanding debt will be $86.7 million of its 6% convertible subordinated notes due 2007.

"With this final auto conversion, we will have eliminated the entirety of the 2009 convertible senior notes from our balance sheet," commented Vincent Milano, ViroPharma's chief financial officer, in a news release. "We are delighted to be able to improve our capital structure so dramatically in the last two months, reducing our overall debt by 57%. We will continue to focus on execution in all areas of our business, including our efforts to identify non-equity dilutive alternatives to manage the remaining 2007 subordinated notes."

Based in Exton, Pa., ViroPharma is focused on treatments for viral diseases.

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