Vertex Plans Stock-Note Swap

Holders get more shares.
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Vertex Pharmaceuticals

(VRTX) - Get Report

said three holders of its 5.75% convertible senior subordinated notes due 2011 agreed to exchange about $58.3 million in aggregate principal amount of those notes held by them for around 4.1 million shares of the company's common stock.

That's about 159,000 shares more than the number of shares into which the bonds were convertible under their original terms.

The additional shares largely relate to unpaid interest through February 2007, when the notes would have been callable by the Cambridge, Mass.-based company.

The company expects the exchanges to be completed by the close of business on Aug. 9.

Upon completion of the exchanges, the aggregate principal amount of the notes will be reduced to about $59.6 million. Upon issuance of the common stock in exchange for the notes, the company will have about 115 million shares of common stock outstanding.

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