AtheroGenics Restructures $17.5 Million of Its 2008 Convertible Debt
ATLANTA, GA -- Jan 9, 2008 -- AtheroGenics, a pharmaceutical company focused on the treatment of chronic inflammatory diseases, today announced that it has restructured an additional $17.5 million of its remaining 2008 convertible debt. With the completion of this transaction, the Company's original $100 million in face value of 2008 convertible notes has been reduced to $30.5 million. At December 31, 2007, the Company had approximately $93 million in cash and short term investments.
Under the terms of the restructuring, $17.5 million of notes due in 2008 were exchanged for $5.5 million in cash and $11.5 million of the Company's 4.5% convertible notes due March 1, 2011. Other than the 2011 maturity date, the terms of the newly issued notes are identical to the terms of the 2008 notes, including a $15.34 conversion price.
"This restructuring represents another opportunistic financial transaction that will reduce our short term cash needs and provide us with greater financial flexibility," stated Mark P. Colonnese, Executive Vice President of Commercial Operations and Chief Financial Officer at AtheroGenics. "Over the last few years, we have welcomed opportunities to restructure this debt on terms that provide benefits to the note holders and minimize dilution to our current equity holders."
AtheroGenics is focused on the discovery, development and commercialization of novel drugs for the treatment of chronic inflammatory diseases, including diabetes and coronary heart disease (atherosclerosis). AtheroGenics has commenced ANDES (AGI-1067 as a Novel Anti-Diabetic Agent Evaluation Study), a Phase III clinical trial to study its lead antioxidant and anti-inflammatory drug candidate, AGI-1067, in patients with diabetes. In addition, the Company has other clinical and preclinical anti-inflammatory compounds, including AGI-1096, an oral agent for the prevention of organ transplant rejection. For more information about AtheroGenics, please visit http://www.atherogenics.com.