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Affymetrix to Repurchase $95.5M of Senior Notes as Part of Settlement

NEW YORK (GenomeWeb News) – Affymetrix has settled a legal dispute with holders of the company's 3.50 percent senior notes, and as part of the settlement it has agreed to start within two weeks a tender offer to repurchase the entire $95.5 million aggregate principal amount of the notes currently outstanding plus accrued interest, it said in a document filed with the US Securities and Exchange Commission.

Tang Capital Partners, owners of about $78.3 million principal amount of the notes, has agreed to tender all of its notes in the offer, Affy said.

In addition, Affy said that based on discussions with lenders who have said they will finance the firm's pending acquisition of eBioscience, it expects it will need to restructure the financing arrangements in order to complete the deal. The company has not reached any agreements or understanding with its lenders or other financing sources, it said.

The settlement pertains to a class action lawsuit brought against Affy by Tang Capital in December in the Superior Court of California, County of Santa Clara. The lawsuit alleged Affy's bid for eBioscience constituted a fundamental change under the indenture that governs the notes due in 2038.

Affy announced its $330 million bid for eBioscience in late November but has pushed back the completion date twice since then. It now expects to complete the deal by the end of the first quarter.