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PDL BioPharma Inc (NASDAQ: PDLI) entered into separate privately negotiated transactions

On Friday, PDL BioPharma Inc (NASDAQ: PDLI) stock price moved downward at -5.49%. Its total market capitalization is $255814721. Its day lowest price was $2.15 and its hit its day highest price at $2.37. The stock recent volume is 5767585 shares in comparison to its average trading volume of 1383066 shares. Looking at the stock’s price level on the past 52-week graph, PDLI recorded a 52-week high of $3.89 and its 52-week low of $2.15.

PDL BioPharma, Inc. (NASDAQ: PDLI) announced that it has entered into separate privately negotiated transactions to exchange approximately $86.1 million in aggregate principal amount of its 2.75% Convertible Senior Notes due 2021 (the “Existing Notes”) for approximately $86.1 million in aggregate original principal amount of new 2.75% Convertible Senior Notes due 2024 (the “Exchange Notes” and such transaction, the “Exchange”) together with an aggregate of approximately $6.0 million of cash. Following the closing of the Exchange, approximately $63.9 million aggregate principal amount of Existing Notes will remain outstanding with terms unchanged. The Existing Notes and Exchange Notes hereafter referred to herein as the “Notes.”

“We are capitalizing on the strength of the convertible notes market to extend the maturity of our debt under favorable terms,” said Dominique Monnet, president and CEO of PDL. “This transaction will further strengthen our balance sheet as we execute on our strategy to build a focused portfolio of actively managed operating companies with significant revenue potential.”

Each $1,000 principal amount of Existing Notes will be exchanged for $1,000 original principal amount of Exchange Notes and a cash payment of $70.

The Exchange Notes will be senior, unsecured obligations of PDL and will bear interest at a rate of 2.75% per year. Interest will be payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2019. The Exchange Notes will mature on December 1, 2024, unless earlier converted, redeemed or repurchased in accordance with the terms of the Exchange Notes.

The original principal amount of the Exchange Notes will accrete at a rate of 2.375% per year commencing September 17, 2019 through the maturity date of the Exchange Notes. The accreted principal amount of the Exchange Notes is payable in cash upon maturity. However, regular cash interest payments on the Exchange Notes, and the composition of the consideration due upon their conversion, will be determined based on their original principal amount and not their accreted principal amount.

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