Cell Genesys, Inc. Announces Tender Offer Results While Continuing to Pursue Strategic Alternatives

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Cell Genesys, Inc. (NASDAQ:CEGE) today reported that over 98% or approximately $67 million aggregate principal amount of its 3.125% convertible bonds were tendered in its previously announced exchange offer. The Company offered to exchange all of the $68.3 million aggregate principal amount of its outstanding 3.125% Convertible Senior Notes due in 2011 at a purchase price for each $1,000 principal amount of (i) $500, plus accrued interest, (ii) $140 worth of common stock equal to approximately 221 shares of common stock, and (iii) $310 of new 3.125% Convertible Senior Notes due in May 2013. Upon settlement of the exchange offer, approximately $1 million of the original 3.125% Convertible Senior Notes due in 2011 remain outstanding and $20.8 million of new 3.125% Convertible Senior Notes 2013 notes are expected to be issued. In connection with the exchange, participants in the exchange are expected to be issued approximately 13.8 million shares of common stock, $33.5 million in cash and $0.3 million in accrued interest. The Company expects to settle the exchange offer as soon as practicable.