31st May 2005 07:01
Skyepharma PLC31 May 2005 NOT FOR RELEASE OR DISTRIBUTION OR PUBLICATION IN WHOLE OR PART IN OR INTO THE UNITED STATES OF AMERICA, CANADA, JAPAN OR AUSTRALIA FOR IMMEDIATE RELEASE 31 May 2005 SKYEPHARMA ANNOUNCES £20M PRIVATE PLACEMENT OF 8.0% CONVERTIBLE BONDS DUE 2025 LONDON, UK, 31 May 2005 -- SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) ("SkyePharma"or the "Company") announces that it has signed agreements for a privateplacement of new convertible bonds. The issue will raise £20 million and theproceeds will be used to defray corporate expenses, including the £9.8 millionlikely to be required for the forthcoming redemption of the Company's 6%Convertible Bond due 2005, and will satisfy SkyePharma's projected use of cashfor the foreseeable future. The private placement is being conducted by Credit Suisse First Boston (Europe)Limited, SkyePharma's sole broker and financial adviser. The new convertiblebonds, which have a coupon of 8.0% and a first put after 5 years with a finalmaturity of 2025, have a conversion price premium of 50% to the volume-weightedaverage share price of SkyePharma on 27 May 2005. The two existing convertiblebonds, due in June 2005 and May 2024, are not affected by this transaction. Michael Ashton, SkyePharma's Chief Executive, said: "SkyePharma's PreliminaryResults announcement on 28 April made reference to the fact that the company'sworking capital requirements are sensitive to the timing and receipt ofmilestone payments and payments received on the signing of new contracts. Sincethat date, the FDA has approved Triglide(TM), triggering a $15 million milestonepayment from our partner First Horizon, and we are working toward the conclusionof a definitive agreement for the licensing of our major pulmonary productFlutiformTM. In the mean time, the Board felt that it was in the best interestof the company to remove any uncertainty in respect of the company's financialresources." SkyePharma will be issuing its Annual Report for 2004 in the next three weeks. SkyePharma PLC develops pharmaceutical products benefiting from world-leadingdrug delivery technologies that provide easier-to-use and more effective drugformulations. There are now eleven approved products incorporating SkyePharma'stechnologies in the areas of oral, injectable, inhaled and topical delivery,supported by advanced solubilisation capabilities. For more information, visitwww.skyepharma.com. For further information please contact: SkyePharma PLC +44 207 491 1777Michael Ashton, Chief Executive OfficerPeter Laing, Director of Corporate Communications +44 205 491 5124 Sandra Haughton, US Investor Relations +1 212 753 5780 Credit Suisse First Boston (Europe) Limited +44 207 883 6737Frank Heitmann Buchanan Communications +44 207 466 5000Tim Anderson / Mark Court Notes to Editors Except for the historical information herein, the matters discussed in this newsrelease include forward-looking statements that may involve a number of risksand uncertainties. Actual results may vary significantly based upon a number offactors, which are described in SkyePharma's 20-F and other documents on filewith the SEC. These include without limitation risks in obtaining andmaintaining regulatory approval for existing, new or expanded indications forits products, other regulatory risks, risks relating to SkyePharma's ability tomanufacture pharmaceutical products on a large scale, risks that customerinventory will be greater than previously thought, risks concerning SkyePharma'sability to manage growth, SkyePharma's marketing partners' ability to market apharmaceutical product on a large scale and manage their sales and marketingorganisation and maintain or expand sales and market share for its products,risks relating to the ability to ensure regulatory compliance, risks related tothe research, development and regulatory approval of new pharmaceuticalproducts, risks related to research and development costs and capabilities,market acceptance of and continuing demand for SkyePharma's products and theimpact of increased competition, risks associated with anticipated top andbottom line growth and the possibility that upside potential will not beachieved, competitive products and pricing, and risks associated with theownership and use of intellectual property rights. SkyePharma undertakes noobligation to revise or update any such forward-looking statement to reflectevents or circumstances after the date of this release. This announcement may not be released in the United States. This announcementdoes not constitute an offer of securities for sale in any jurisdiction,including the United States, and any securities described in the announcementmay not be offered or sold in the United States or to U.S. persons absentregistration under the US Securities Act of 1933 or an exemption fromregistration. There will be no offer of securities in the United States. In the United Kingdom this announcement is directed exclusively at persons whofall within Article 19 or 49 of the Financial Services and Markets Act 2000(Financial Promotion) Order 2001 or to whom this announcement may otherwise bedirected without contravention of Section 21 of the Financial Services andMarkets Act 2000. The bonds referred to in this announcement shall be issuedonly to such persons. Credit Suisse First Boston (Europe) Limited is acting solely for SkyePharma inconnection with the private placement referred to above and will not beresponsible to anyone other than SkyePharma for providing the protectionsoffered to clients of Credit Suisse First Boston (Europe) Limited or forproviding advice in relation to the private placement. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SKP.L