Amarin Corporation Plc (ADR) (NASDAQ:AMRN) has reportedly filed 8-K with the Securities and Exchange Commission notifying about the creation of the direct financial obligation. The filing follows the company’s announcement last month, where it agreed to purchase nearly $16.2 million of its exchangeable notes.
Purchase of Senior Notes
The company notified in its press releases that it and their subsidiaries, Corsicanto Limited have entered into a purchase agreement. As per the said agreement, the company has agreed to purchase roughly $16.2 million worth of 3.50% Exchangeable Senior Notes in consideration of $15.9 million. These notes were issued on January 9, 2012, which is due to mature in 2032. The purchase price reflects discounted price over the par amount of 2012 Notes.
After the purchase of the specified notes, the Issuer will have roughly $15.1 million of outstanding 2012 Notes. Apart from the purchase of 2012 Notes, Amarin Corporation plc (ADR (NASDAQ:AMRN) has also entered into a private agreement with one of its investors, which has agreed to buy nearly $31.3 million worth of the new 3.50% November 2015 Senior Notes for a consideration of $27.5 million. These Notes are due to mature in 2032.
New notes and proceeds
The company has expressed its intention to utilise the proceeds from such agreement towards financing the purchase of 2012 Senior Notes. The balance amount left after utilising $15.9 million will be deployed for working capital requirement and other general corporate purposes. The New 2015 Senior Notes will carry the same terms to the Issuer as 3.50% May 2014 Senior Notes, except that such Notes will not be backed by a guarantee from any entity.
Both the purchase of 2012 Notes and issuance of the New Notes are believed to be concluded in November’2015. Lazard Freres & Co. LLC was an advisor to the company. The stock of Amarin Corporation plc (ADR) (NASDAQ:AMRN) fell by 1.44% and closed the previous session at $2.05.