Spectrum Pharmaceuticals Announces Agreements to Exchange $69.5 Million in Principal Amount of Its 2.75% Convertible Senior N...
October 10 2017 - 7:00AM
Business Wire
- Approximately $40.5 Million in
Principal Amount of Notes Will Be Outstanding Following the
Exchanges
Spectrum Pharmaceuticals, Inc. (NasdaqGS: SPPI) today announced
that it has entered into separate, privately negotiated exchange
agreements with certain holders of its 2.75% Convertible Senior
Notes due December 15, 2018 (the “Notes”). Pursuant to the exchange
agreements, the Company will exchange approximately $69.5 million
in aggregate principal amount of Notes, for (i) approximately 5.4
million newly-issued shares of the Company’s common stock, plus
(ii) $26.7 million in cash, as well as accrued and unpaid interest
in cash. Following the exchanges, which are expected to be
completed on or about October 12, 2017, subject to customary
closing conditions, approximately $40.5 million in aggregate
principal amount of the Notes will remain outstanding.
In connection with the exchange of the Notes, the Company
intends to enter into agreements with dealers party to certain
convertible note hedge transactions related to the Notes to unwind
a corresponding portion of its previously sold warrants and
previously purchased call options that were part of such
convertible note hedge transactions.
The shares of common stock issuable upon the exchanges have not
been registered under the Securities Act of 1933, as amended, or
the securities laws of any state or other jurisdiction, and may not
be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
This press release does not constitute an offer to sell or a
solicitation to buy any of the securities described herein, nor
shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Spectrum Pharmaceuticals, Inc.
Spectrum Pharmaceuticals is a leading biotechnology company
focused on acquiring, developing, and commercializing drug
products, with a primary focus in Hematology and Oncology. Spectrum
currently markets six hematology/oncology drugs, and has an
advanced stage pipeline that has the potential to transform
the Company. Spectrum's strong track record for in-licensing and
acquiring differentiated drugs, and expertise in clinical
development have generated a robust, diversified, and growing
pipeline of product candidates in advanced-stage Phase 2 and Phase
3 studies. More information on Spectrum is available
at www.sppirx.com.
Forward-looking statement — This press release may contain
forward-looking statements regarding future events. These
statements are based on management's current beliefs and
expectations. These statements include, but are not limited to,
statements relating to the consummation of the exchanges and
unwinding of the convertible note hedge transactions, including
whether our counterparties to the exchange agreements properly
deliver the convertible notes to us. The Company does not plan to
update any such forward-looking statements and expressly disclaims
any duty to update the information contained in this press release
except as required by law.
SPECTRUM PHARMACEUTICALS, INC.® is a registered trademark of
Spectrum Pharmaceuticals, Inc.. REDEFINING CANCER CARE™ and the
Spectrum Pharmaceuticals logos are trademarks owned by Spectrum
Pharmaceuticals, Inc. Any other trademarks are the property of
their respective owners.
© 2017 Spectrum Pharmaceuticals, Inc. All Rights Reserved
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version on businesswire.com: http://www.businesswire.com/news/home/20171010005794/en/
Spectrum Pharmaceuticals, Inc.Shiv KapoorVice President,
Strategic Planning & Investor
Relations702-835-6300InvestorRelations@sppirx.com
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