Basilea to begin partial buyback of convertibles due 2022

By Rebecca Melvin

New York, June 25 – Basilea Pharmaceutica Ltd. announced a partial repurchase offer of its outstanding convertibles bonds due 2022 (ISIN: CH0305398148), according to a company news release.

The offer is dependent on at least CHF 90 million and up to CHF 110 million in 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 July 10 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 a new CHF 125 million issue of seven-year convertibles. The company may claw back the new bond deal size by up to CHF 25 million, depending on how many bonds are tendered in the repurchase offer.

The repurchase offer is also 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, and they do not significantly change 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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