Wednesday, September 10, 2008

Oscient Pharma proposes exchange offer

By Mass High Tech Staff

Waltham pharmaceutical company Oscient Pharmaceuticals Corp. has filed a registration statement with the U.S. Securities and Exchange Commission on an offer for holders of the company’s 3.5 percent convertible senior notes due 2011.

The company’s proposed offer stems from a plan to lower debt by adjusting its capital structure.

The offer consists of each $1,000 worth of the 3.5 percent convertible senior notes due 2011 to be exchanged for $300 principal amount of new 12.5 percent convertible senior notes due 2011, in addition to company common stock worth about $200.

In total, Oscient (Nasdaq: OSCI) common stock offerings related to the exchange tally up to $225.7 million in principal — an amount equal to the current outstanding convertible senior notes. The aggregate principal amount of the new 12.5 percent convertible senior notes due 2011 add up to $67.7 million.

In December 2007, Oscient reported that it had been granted permission to continue listing its stock on the Nasdaq Global Market following initial warnings of delisting.

Oscient develops pharmaceutical drugs for the treatment of high blood cholesterol and high triglycerides, as well as treatment for chronic bronchitis and pneumonia.

For 2007, the company reported a net loss of $29.8 million on total revenue of $80 million.