Cell Therapeutics (CTIC) Intends to Offer to Exchange up to $89.2 Million of its Convertible Notes in a 'Modified Dutch Auction' Tender Offer

May 11, 2009 5:45 PM EDT

Cell Therapeutics, Inc. (Nasdaq: CTIC) announced that that its Board of Directors has authorized a "Modified Dutch Auction" tender offer and that it intends to exchange shares of its common stock, no par value, and cash for up to approximately an aggregate of $89.2 million principal amount for the following outstanding shares of the Company's convertible notes:

--4% Convertible Senior Subordinated Notes due 2010
-- 5.75% Convertible Senior Notes due 2011
-- 6.75% Convertible Senior Notes due 2010
-- 7.5% Convertible Senior Notes due 2011
-- 9% Convertible Senior Notes due 2012

Cell Therapeutics is conducting the Exchange Offer in order to reduce the principal amount of its outstanding indebtedness. The Company believes that reducing its outstanding indebtedness is necessary in order for its business to operate in light of its current asset base and revenue prospects. Currently, there is an aggregate of approximately $118.9 million of Notes outstanding. The Exchange Offer is expected to commence in the near future.

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