NEW YORK (GenomeWeb News) — DeCode Genetics today said it will pocket around $43 million in a convertible note placement, which it will use to pay for drug development programs and general corporate use.
Decode said it has commitments from investors to buy $65 million worth of senior convertible notes due in 2011. The debt will be convertible into Decode common stock at an initial conversion rate of 71.4286 shares per $1,000 principal amount of notes, equivalent to an initial conversion price of $14 per share.
The company said it may redeem the notes beginning April 20, 2009.
The company said the offering should close by Nov. 17.