EAST BRUNSWICK, N.J., May 9, 2012 /PRNewswire/ -- Savient Pharmaceuticals, Inc. (Nasdaq: SVNT) today announced that it has completed the financing and debt restructuring transactions contemplated by certain Exchange and Purchase Agreements, dated May 7, 2012, between the Company and certain holders (the "Holders") of its currently outstanding 4.75% convertible senior notes due 2018 (the "Existing Notes"). Through these transactions, the Company raised approximately $44 million in net proceeds and extended the maturity date of approximately 50% of the Existing Notes by approximately 15 months.
Pursuant to the terms of the Purchase and Exchange Agreements, the Holders exchanged their Existing Notes, having an aggregate outstanding principal amount equal to approximately $108 million, for units of the Company ("Units") comprised of senior secured discount notes due 2019 ("New Notes"), having an equivalent aggregate principal amount at maturity, and warrants to purchase an aggregate of 4,000,019 shares of the Company's Common Stock at an exercise price equal to $1.863 per share (the "Warrants"). The Holders simultaneously purchased additional Units, the aggregate purchase price of which resulted in net proceeds to the Company of approximately $44 million. The aggregate principal amount at maturity of the New Notes issued upon the exchange of the Existing Notes plus the New Notes issued to the Holders upon their purchase of the additional Units is approximately $171 million. Cowen and Company LLP provided investment banking services to the Company in connection with the Company's offer and issuance of the Units.
The Units and the New Notes and Warrants comprising the Units were issued pursuant to an Indenture, dated as of May 9, 2012, by and among the Company, certain of the Company's subsidiaries as guarantors and U.S. Bank National Association as Trustee (the "Indenture") and a warrant agreement (the "Warrant Agreement") with U.S. Bank National Association, pursuant to which U.S. Bank National Association will act as warrant agent for the Warrants. The New Notes were issued in an original principal amount equal to 73.78% of their fully accreted principal amount and have a cash coupon of 3% in the first three years and a cash coupon of 12% per year thereafter. In addition to the New Note, each Unit includes 23.4 Warrants to purchase one share of the Company's Common Stock at an exercise price of $1.863 per share. The New Notes are secured by substantially all of the assets of the Company and by the assets and securities of certain of the Company's subsidiaries pursuant to a Pledge and Security Agreement dated as of May 9, 2012 (the "Pledge and Security Agreement"), subject to certain exclusions described in the Indenture and Pledge and Security Agreement.
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities.