This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Savient Pharmaceuticals Completes Financing And Debt Restructuring Transactions

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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TSLA $212.29 0.36%
YHOO $36.79 -0.41%
AAPL $92.14 -1.20%
FB $118.45 0.54%
GOOG $706.01 0.65%


Chart of I:DJI
DOW 17,637.29 -23.42 -0.13%
S&P 500 2,046.02 -4.61 -0.22%
NASDAQ 4,697.1260 -19.9680 -0.42%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs