PDL BioPharma, Inc. (PDL) (Nasdaq: PDLI) today announced an adjustment to the conversion rate for its 2.00% Convertible Senior Notes due February 15, 2012 (the 2012 Notes) effective September 16, 2010 in connection with the special dividend to be paid on October 1, 2010 to all stockholders who own shares of PDL on September 15, 2010, the record date.
The conversion rate for the 2012 Notes, as adjusted, is 140.571 shares of common stock per $1,000 principal amount or $7.11 per share. The conversion rate for the 2012 Notes was previously 128.318 shares of common stock per $1,000 principal amount of the 2012 Notes. In connection with a cash dividend, the conversion rate is increased by multiplying the previous conversion rate by a fraction, the numerator of which is the average closing price of PDL's common stock for the five consecutive trading days immediately preceding the ex-dividend date of September 13, 2010 for the cash dividend, and the denominator of which is the difference of such average closing price less the dividend amount.