Summary
Vertex Pharmaceuticals Incorporated (VRTX) reported on October 5, 2000, that all of its $175 million aggregate principal amount of 5% Convertible Subordinated Notes Due March 2007 were converted into common stock. This conversion occurred in lieu of a scheduled redemption on October 5, 2000, with noteholders exercising their right to convert up to October 4, 2000. The conversion resulted in the issuance of approximately 4.3 million new shares of common stock, increasing the total shares outstanding to roughly 58.6 million. Additionally, Vertex made a "make-whole" payment to noteholders, amounting to $82.14 per $1,000 principal amount of notes. This payment led to a one-time charge to earnings of approximately $14.4 million.
Key Highlights
- 1All $175 million of 5% Convertible Subordinated Notes Due March 2007 were converted into common stock.
- 2Conversion occurred in lieu of redemption, with noteholders exercising their right prior to October 4, 2000.
- 3Approximately 4.3 million shares of common stock were issued as a result of the conversion.
- 4Total outstanding shares increased to approximately 58.6 million.
- 5Vertex made a 'make-whole' payment of $82.14 per $1,000 principal amount of notes.
- 6A one-time charge to earnings of approximately $14.4 million was incurred due to the make-whole payment.