Connetics Announces Exercise of Option to Purchase Additional Convertible Senior Notes.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif. -- Connetics Corporation (Nasdaq:CNCT CNCT Connect CNCT Certified Network Computer Technician ) announced today that the lead initial purchaser in Connetics' recent private placement of $150 million in principal amount of 2.0% convertible senior notes maturing March 30, 2015 exercised its right, in full, to purchase an additional $50 million in principal amount of notes. The notes will be convertible into cash and, under specified circumstances, shares of Connetics common stock at an initial conversion price of approximately $35.46 per share. The sale of the additional $50 million in principal amount of notes is expected to close on March 31, 2005, subject to certain closing conditions. Connetics expects to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the exercise of this option for general corporate purposes, including potential future product or company acquisitions, capital expenditures and working capital. The offering was made only to qualified institutional buyers In law, a Qualified Institutional Buyer is a purchaser of securities that is financially sophisticated and is legally recognized by security market regulators to need less protection from sellers than most members of the public. in accordance with Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. of the Securities Act of 1933, as amended. The notes and shares of stock that may be issued upon conversion of the notes have not been registered under the Securities Act of 1933 or applicable state securities laws and may not be offered or sold in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act. Statements about the offering and our expectations regarding the use of proceeds from the offering are forward-looking statements. These statements are based on certain assumptions made by Connetics' management and are subject to a number of risks and uncertainties, many of which are beyond Connetics' control, and which could cause actual events to differ materially from those expressed in the forward-looking statements. Forward-looking statements represent the judgment of Connetics' management as of the date of this release, and Connetics disclaims any intent or obligation to update any forward-looking statements based on future events or developments. Press Release Code: (CNCT-G) |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion