Nektar Therapeutics announced the private financing placement of $125 million of 12.0% Senior Secured Notes Due in 2017 in an offering exempt from the registration requirements of the Securities Act of 1933.
Nektar intends to use the net proceeds from this private financing offering of the Senior Secured Notes towards the repayment of its Convertible Subordinated Notes due September 28, 2012.
The sale of the Senior Secured Notes is expected to close on July 11, 2012, subject to customary closing conditions.
The notes are callable by Nektar beginning in July 2015, subject to certain prepayment premiums and conditions.
The Senior Secured Notes are not subject to financial performance targets.
The Senior Secured Notes and related note guarantees to be offered will not be and have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Nektar's cash, cash equivalents, and investments at March 31, 2012 were approximately $499 million.
This does not include the proceeds from the anticipated closing of the Senior Secured Notes offering.
The company reiterates its financial guidance for 2012 cash used in operations (plus capital expenditures) of between $130 million and $140 million.
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