May 25 2011
Akorn, Inc. (NASDAQ:AKRX) ("Akorn") announced today that, subject to market conditions, it intends to offer $100 million principal amount of Convertible Senior Notes due 2016 (the "Notes"). The Notes are being offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In addition, Akorn intends to grant to the initial purchasers of the Notes a 30-day over-allotment option to purchase up to an additional $20 million aggregate principal amount of the Notes.
The Notes will be convertible into shares of Akorn's common stock, cash, or a combination thereof. The interest rate, conversion rate, conversion price and other terms of the Notes will be determined at the time of pricing of the offering. Akorn intends to use the net proceeds from the sale of the Notes for general corporate purposes, including potential future acquisitions and strategic transactions. Akorn has no pending agreement or understanding with respect to any such acquisition or transaction.
Source: Akorn, Inc.