Date: 2015-10-15
Type of information: Private placement
Company: Keryx Pharmaceuticals (USA - MA)
Investors:
Amount: $125 million
Funding type: private placement
Planned used: Keryx expects to use proceeds from the financing for working capital and other general corporate purposes, including efforts to expand the utilization of Auryxia™ in the U.S. in the current indication and support label expansion opportunities.
Others: * On October 15, 2015, Keryx Biopharmaceuticals announced that it has entered into an agreement to raise $125 million through the private placement of Convertible Senior Notes, due 2020, with funds managed by The Baupost Group. With the additional capital, Keryx has a pro-forma cash position of approximately $225 million as of September 30, 2015 . In conjunction with the financing, Keryx will increase the number of directors on its Board to eight, as Baupost will have the right to appoint a director to Keryx's Board by the end of 2015. Baupost will also appoint an observer to Keryx's board.
The company also announced the implementation of a cost reduction plan to re-align its operating expense structure. The plan is expected to significantly decrease the company's cash operating expenses, excluding cost of goods sold, in 2016 to between $87 million and $92 million . Keryx plans to provide further 2016 financial guidance in early 2016.
The zero-coupon notes will mature in October 2020 unless converted in accordance with their terms prior to such date. Keryx does not have the right to redeem the notes prior to maturity. The conversion price of the notes shall be equal to the closing price of Keryx's common stock on the day prior to closing, October 14, 2015 , or $3.74 per share, subject to certain adjustments under the terms of the notes. Keryx has agreed to file future registration statements for the resale of the notes and the shares of Common Stock issuable upon conversion of the notes.
Therapeutic area:
