NOVATO, Calif., April 23 /PRNewswire-FirstCall/ -- BioMarin Pharmaceutical Inc. announced today that it closed the sale of $324,875,000 aggregate principal amount of its 1.875% Senior Subordinated Convertible Notes due 2017 (including $42,375,000 aggregate principal amount of Notes purchased by the underwriter pursuant to its over-allotment option).
The maturity date of the Notes is April 23, 2017. Holders of the Notes may convert, at any time before maturity, any outstanding Notes into shares of the Company’s common stock at an initial conversion rate of 49.1171 shares per $1,000 principal amount of the Notes, which represents a conversion price of approximately $20.36 per share, subject to adjustment under certain circumstances.
The Company has received approximately $316.4 million from the sale of the Notes after deducting the underwriting discount and estimated offering expenses. The Company intends to use the net proceeds of the offering to fund future business development transactions and for general corporate purposes, including working capital. These business development transactions may include acquisitions or licenses of complementary businesses, technologies or products. The Company has no material agreements or commitments with respect to any such acquisitions, license or investment and reserves the right, at the sole discretion of its board of directors, to reallocate the use of proceeds in response to these and other factors. Until the net proceeds are used, the Company intends to invest the funds in investment-grade, interest-bearing securities.
Merrill Lynch & Co. acted as sole book-running manager of the public offering. A shelf registration statement relating to these securities has been filed with the Securities and Exchange Commission and has become effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About BioMarin
BioMarin develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. The company’s product portfolio is comprised of two approved products and multiple clinical and preclinical product candidates. Approved products include Naglazyme(R) (galsulfase) for mucopolysaccharidosis VI (MPS VI), a product wholly developed and commercialized by BioMarin, and Aldurazyme(R) (laronidase) for mucopolysaccharidosis I (MPS I), a product which BioMarin developed through a 50/50 joint venture with Genzyme Corporation. Investigational product candidates include Kuvan(TM) (sapropterin dihydrochloride), a Phase 3 product candidate for the treatment of phenylketonuria (PKU), and 6R-BH4 for cardiovascular indications, which is currently in Phase 2 clinical development for the treatment of peripheral arterial disease. For additional information, please visit www.BMRN.com. Information on BioMarin’s website is not incorporated by reference into this press release.
Forward-Looking Statement
This press release contains certain “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans, objectives and future events. BioMarin Pharmaceutical intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements include statements relating to the anticipated closing of the public offering of senior subordinated convertible notes. These statements are based on the current expectations of the management of BioMarin Pharmaceutical as of the date of this press release and are subject to risks, uncertainties, changes in circumstances, assumptions and other factors that may cause the actual results of BioMarin Pharmaceutical to be materially different from those reflected in its forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, among others, market risks. These and other risks are described in greater detail in BioMarin Pharmaceutical’s filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2006, as amended, and its Registration Statement on Form S-3 filed with the SEC on March 20, 2006, as amended and supplemented. Given these uncertainties, you should not place undue reliance on these forward-looking statements. BioMarin Pharmaceutical assumes no obligation to update its forward-looking statements, except as required by law.
Contacts: Investors Media Eugenia Shen Susan Berg BioMarin Pharmaceutical Inc. BioMarin Pharmaceutical Inc. 415.506.6570 415.506.6594
BioMarin Pharmaceutical Inc.
CONTACT: Investors, Eugenia Shen, +1-415-506-6570, or Media, Susan Berg,+1-415-506-6594, both of BioMarin Pharmaceutical Inc.
Web site: http://www.bmrn.com//
