Oscient Pharmaceuticals (OSCI) Completes Convertible Exchange Offer; to Issue $85M in New 12.5% Convertible Senior Notes and 21M Shares of Common Stock

November 24, 2008 8:39 AM EST

Oscient Pharmaceuticals Corporation (Nasdaq: OSCI) today announced the expiration and final results of its previously announced exchange offer for its outstanding 3.50% Convertible Senior Notes due 2011. Approximately $213 million in aggregate principal amount, or 94.4% of the total outstanding amount of the Existing Notes was tendered and not withdrawn in the exchange offer which expired at 11:59 p.m., New York City time, on November 21, 2008.

As a result of the exchange offer, the Company will issue approximately $85 million in aggregate principal amount of new 12.50% Convertible Guaranteed Senior Notes due 2011 and 21 million shares of the Company's common stock.

The New Notes will be convertible into the Company's common stock, at the option of the holder, at a conversion price of $1.10 per share. The New Notes will also be convertible at the option of the Company if the closing price of the common shares has exceeded 130% of the conversion price for at least 20 trading days during any consecutive 30 trading day period. The New Notes may be redeemed for cash at 100% of the principal amount, plus accrued and unpaid interest, by the Company starting on October 15, 2010.

The exchange offer is expected to close on November 25, 2008, subject to satisfaction of customary closing conditions.

Oscient Pharmaceuticals Corporation, a commercial-stage biopharmaceutical company, sells and markets products to community-based primary care physicians through its primary care sales force in the United States.

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