Biotech company Pharming Group NV ("Pharming" or the "Company") (NYSE Euronext: PHARM) has received commitment from bondholders, representing 70% of the nominal amount of the currently outstanding bonds, to accept the offer to convert the bonds as announced on September 21, 2009. Together, they exceed the threshold level of 60% which Pharming set as a minimum participation in order to execute the transaction.
At the request of certain bondholders and for the purpose of completing the logistics of the applications for conversion, the offer period has been extended by two weeks until October 13, 2009. Bondholders, who have not yet returned a conversion application and wish to participate in the offer, may still do so by completing the application. Further details are described in the formal announcement on the Company's website.
On September 21, 2009, Pharming made a public offer to the holders of convertible bonds (issued in 2007) to convert their bonds into a combination of cash and shares. Under the proposed transaction, Pharming offers EUR 7,500 cash and 59,000 shares for each outstanding bond with a nominal value of EUR 50,000. Following conversion of 70% of the bonds, the total amount of outstanding debt from the convertible bonds will be reduced from EUR 35.8 million to EUR 10.9 million. This transaction will amount to 29.38 million newly issued shares and EUR 3.74 million cash to be paid.
Dr. Sijmen de Vries, Chief Executive Officer, commented: "We are very pleased that 70% of our outstanding convertible debt will be removed from our balance sheet following the completion of this transaction. While the logistics involved with completing the transaction are completed over the next days, we will continue to accept any further applications for conversion. This transaction significantly strengthens our balance sheet and will open the way for additional deals that should further improve our financial position."