INCLINE VILLAGE, Nev.,
Dec. 16, 2019 /PRNewswire/
-- PDL BioPharma, Inc. ("PDL" or the "Company") (Nasdaq: PDLI)
announced today that its Board of Directors has authorized a
$75 million increase to the
$200 million common stock and
convertible notes repurchase authorization that was previously
announced on December 9, 2019, for a
total of $275 million.
On December 13, 2019, the Company
announced it entered into separate, privately negotiated exchange
agreements pursuant to which it is exchanging approximately 80% of
its outstanding 2.75% Convertible Senior Notes for $98.0 million in cash and 13.4 million shares of
Company common stock. The cash and common stock to be distributed
by PDL in this exchange will utilize approximately $143.8 million of the original $200 million authorization based on the closing
price of PDL's common stock on December 12,
2019.
Dominique Monnet, President and
CEO of PDL, said, "The note exchange we announced last week was an
important step towards optimizing our ability to monetize assets
and return the net proceeds to our shareholders. By repurchasing
approximately 80% of our convertible notes, we have made our assets
more attractive to potential buyers. This may also increase the
monetization proceeds that will flow to our shareholders. Today's
increased authorization will enable us to augment our efforts with
common stock repurchases or additional note repurchases as we
execute our strategic plan."
Purchases may be made in open-market transactions, in block
transactions on or off an exchange, in privately negotiated
transactions or by other means as determined by PDL's management
and in accordance with the regulations of the Securities and
Exchange Commission. The repurchase program does not obligate PDL
to acquire any specific number of shares or notes and may be
suspended or terminated at any time.
BofA Securities is acting as financial advisor to PDL in
connection with the repurchase program.
About PDL BioPharma, Inc.
Throughout its history, PDL's mission has been to improve the
lives of patients by aiding in the successful development of
innovative therapeutics and healthcare technologies. PDL BioPharma
was founded in 1986 as Protein Design Labs, Inc. when it pioneered
the humanization of monoclonal antibodies, enabling the discovery
of a new generation of targeted treatments that have had a profound
impact on patients living with different cancers as well as a
variety of other debilitating diseases. In 2006, the Company
changed its name to PDL BioPharma.
As of December 2019, PDL has
ceased to make additional strategic transactions and investments
and is pursuing a formal process to unlock the value of its
portfolio by monetizing its assets and ultimately distributing net
proceeds to shareholders.
For more information please visit www.pdl.com.
NOTE: PDL, PDL BioPharma, the PDL logo and associated
logos and the PDL BioPharma logo are trademarks or registered
trademarks of, and are proprietary to, PDL BioPharma, Inc. which
reserves all rights therein.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws that involve
material risks, assumptions and uncertainties. Many possible events
or factors could affect our future results and performance, such
that our actual results and performance may differ materially from
those that may be described or implied in the forward-looking
statements. As such, no forward-looking statement can be
guaranteed. The factors that could cause actual results to differ
from what is described herein, include any failure of the exchanges
to close due to failure of conditions to closing, financial market
conditions or otherwise. The Company is subject to additional risks
and uncertainties described in the Company's annual report on Form
10-K and subsequent quarterly reports on Form 10-Q. You are
cautioned not to place undue reliance on these forward-looking
statements, which reflect management's analysis and expectations
only as of the date of this press release. Except as required by
law, the Company undertakes no obligation to publicly release the
results of any revision or update of these forward-looking
statements, whether as a result of new information, future events
or otherwise.
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SOURCE PDL BioPharma, Inc.