Par Pharma Companies Inc. (PRX) announced that it has commenced a Modified Dutch Auction tender offer for a portion of its outstanding 2.875% Senior Subordinated Convertible Notes due September 30, 2010. Par is offering to purchase, for cash, up to $65 million aggregate principal amount, or up to approximately 82.7%, of the outstanding convertible notes, at a price not greater than $990.00 nor less than $982.50 per $1 thousand principal amount, plus accrued and unpaid interest thereon up to, but not including, the date of purchase of the convertible notes. The tender offer is scheduled to expire on November 11.
The company said it is conducting the tender offer in order to reduce the principal amount of its outstanding indebtedness and to provide an opportunity to holders of the convertible notes to gain liquidity with respect to the notes that they may not otherwise have. Par expects to fund the purchase of convertible notes tendered in the tender offer with available cash on hand.
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