BRISTOL, Tenn., March 24 /PRNewswire-FirstCall/ -- King Pharmaceuticals,
Inc. (NYSE: KG) announced today the pricing of $400 million of convertible
senior notes due 2026 in a private offering. In addition, the Company has
granted the initial purchasers of the notes an option to purchase up to an
additional $60 million aggregate principal amount of notes to cover over-
allotments.
The notes pay interest semiannually at a rate of 1.25% per year and will
be convertible upon the occurrence of specified events, at an initial
conversion rate of 48.0031 shares of common stock per $1,000 principal amount
of notes (representing a conversion price of approximately $20.83 per share).
The notes will also pay contingent interest commencing on April 1, 2013, if
the trading price of the notes reaches a specified level. Upon conversion,
the Company will pay cash equal to the lesser of the principal amount and the
conversion value of such notes, based upon a specified observation period,
and, if the conversion value exceeds the principal amount, cash or shares of
its common stock as the Company may elect as payment for the premium. The
notes are guaranteed by the Company's domestic subsidiaries.
The Company intends to use the net proceeds from the offering to
repurchase from time to time or redeem its 2-3/4% Convertible Debentures due
November 15, 2021 and for general corporate purposes.
The notes, the guarantees, and the common stock issuable upon conversion
of the notes have not been registered under the Securities Act of 1933, as
amended (the "Securities Act"), or applicable state securities laws, and may
not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the Securities Act
and applicable state securities laws. This press release shall not constitute
an offer to sell or a solicitation of an offer to buy any securities, nor
shall there be any sale of securities in any state or jurisdiction 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.
Forward-looking Statements
This release contains forward-looking statements which reflect
management's current views of future events and operations, including, but not
limited to, statements pertaining to the Company's plan to use the proceeds of
the private offering of the notes to repurchase its 2-3/4% Convertible
Debentures due November 15, 2021 and for general corporate purposes. These
forward-looking statements involve certain significant risks and
uncertainties, and actual results may differ materially from the forward-
looking statements. Some important factors which may cause actual results to
differ materially from the forward-looking statements include the Company's
ability to close the private offering of the notes and effect repurchases of
its 2-3/4% Convertible Debentures as expected. Other important factors that
may cause actual results to differ materially from the forward-looking
statements are discussed in the "Risk Factors" section and other sections of
King's Form 10-K for the year ended December 31, 2005, which is on file with
the U.S. Securities and Exchange Commission. King does not undertake to
publicly update or revise any of its forward-looking statements even if
experience or future changes show that the indicated results or events will
not be realized.
SOURCE King Pharmaceuticals, Inc.
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Related links:
http://www.kingpharm.com
Company News On-Call:
http://www.prnewswire.com/comp/120319.html
CONTACT:
James E. Green, Executive Vice President,
Corporate Affairs, +1-423-989-8125, or David E. Robinson, Senior
Director, Corporate Affairs, +1-423-989-7045, both of King
Pharmaceuticals, Inc.
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