Salix Pharmaceuticals Ltd completes sale of convertible notes

Mon. August 25, 2008; Posted: 10:06 AM

Aug 25, 2008 (M2 EQUITYBITES via COMTEX) -- SLXP | Quote | Chart | News | PowerRating -- Salix Pharmaceuticals Ltd (NASDAQ:SLXP), which develops and markets prescription pharmaceutical products for the treatment of gastrointestinal diseases, declared on 22 August that the company has concluded its offering of USD60m aggregate principal amount of 5.5% convertible senior notes due 2028, which includes the exercise in full of the initial purchasers' over-allotment option.

According to the company, the coupon on the notes is 5.5% per year on the principal amount. Interest accrues from 22 August 2008 and is payable semi-annually in arrears on 15 August and February 15 of each year, commencing 15 February 2009.

The company said that the notes will mature on 15 August 2028, unless previously converted or repurchased. The notes are not redeemable prior to 15 August 2013.

The notes will be convertible, under certain circumstances, into cash, common shares of the company or any combination thereof at itselection. The initial conversion rate for the notes is 108.0847 shares of common stock per USD1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately USD9.25 per share of common stock.

The company said it plans to use the net proceeds from the offering to fund potential product acquisitions or in-licensing opportunities, to develop and commercialize product candidates and new indications for rifaximin and to provide ongoing working capital and for general corporate purposes.

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For full details on Salix Pharmaceuticals Ltd (SLXP) click here. Salix Pharmaceuticals Ltd (SLXP) has Short Term PowerRatings of 6. Details on Salix Pharmaceuticals Ltd (SLXP) Short Term PowerRatings is available at This Link.

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