Issuer:
|
Alpharma Inc. (NYSE symbol: ALO) | |
Title of securities:
|
2.125% Convertible Senior Notes due 2027 | |
Aggregate principal amount offered: |
$300,000,000 (with no option to purchase additional notes), increased from a preliminary offering amount of $200,000,000 (excluding an option to purchase up to $30,000,000 of additional notes). | |
Net proceeds:
|
$292,600,000 | |
Contingent interest:
|
0.25%, subject to the conditions described in the prospectus supplement | |
Maturity:
|
March 15, 2027 | |
Annual interest rate:
|
2.125% per annum | |
Interest payment dates:
|
March 15 and September 15 of each year | |
Put dates:
|
March 15, 2014, March 15, 2017 and March 15, 2022 | |
Fundamental change put:
|
If the issuer undergoes a fundamental change, holders may, subject to certain conditions, require the issuer to repurchase the notes for cash equal to 100% of the principal amount of the notes, plus accrued and unpaid interest. | |
Conversion rights:
|
The notes are convertible, in whole or in part, prior to the close of business on the business day immediately preceding the stated maturity, upon the satisfaction of one or more of the conditions described in the preliminary prospectus supplement. | |
Initial conversion price:
|
Approximately $32.60 per share of Class A Common Stock | |
Initial conversion rate:
|
30.6725 shares of Class A Common Stock per $1,000 aggregate principal amount of notes | |
Payment upon conversion:
|
As further described in the preliminary prospectus supplement, for each $1,000 principal amount of notes, a holder will receive a settlement amount equal to the sum of the daily settlement amounts for each of the 20 consecutive trading days in the conversion reference period. The settlement amount will be paid in cash or a combination of cash and Class A Common Stock. | |
Use of proceeds:
|
The issuer intends to use the net proceeds of this offering to fund future business development transactions and for general corporate purposes, including working capital. |
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Settlement:
|
March 20, 2007 | |
U.S. federal income tax
considerations:
|
Each holder will be deemed to have agreed in the indenture, for United States federal income tax purposes, to treat the notes as “contingent payment debt instruments” and to be bound by our application of the U.S. Department of Treasury regulations that govern contingent payment debt instruments. The comparable yield is 8.250%. | |
Adjustment to conversion
rate upon a fundamental
change:
|
If a fundamental change described in any of paragraphs (1) and (2) of the definition of such term occurs and a holder elects to convert its notes in connection with such fundamental change, the issuer will increase the applicable conversion rate for the notes surrendered for conversion by a number of additional shares of common stock (the “make-whole shares”). The following table sets forth the hypothetical stock price, effective date and number of make-whole shares per $1,000 principal amount of notes: | |
| Alpharma, Inc. Conversion Rate Adjustment Table |
| Stock Price |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective Date |
$ | 24.15 | $ | 26.00 | $ | 28.00 | $ | 30.00 | $ | 35.00 | $ | 40.00 | $ | 45.00 | $ | 50.00 | $ | 55.00 | $ | 60.00 | $ | 70.00 | $ | 80.00 | $ | 90.00 | $ | 100.00 | ||||||||||||||||||||||||||||
| |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20-Mar-07 |
10.73 | 9.14 | 7.88 | 6.89 | 5.05 | 3.82 | 2.98 | 2.39 | 1.95 | 1.61 | 1.15 | 0.84 | 0.64 | 0.48 | ||||||||||||||||||||||||||||||||||||||||||
15-Mar-08 |
10.73 | 8.98 | 7.70 | 6.66 | 4.79 | 3.57 | 2.75 | 2.18 | 1.76 | 1.44 | 1.02 | 0.74 | 0.56 | 0.42 | ||||||||||||||||||||||||||||||||||||||||||
15-Mar-09 |
10.73 | 8.79 | 7.47 | 6.37 | 4.45 | 3.23 | 2.45 | 1.90 | 1.50 | 1.22 | 0.84 | 0.61 | 0.45 | 0.34 | ||||||||||||||||||||||||||||||||||||||||||
15-Mar-10 |
10.73 | 8.56 | 7.21 | 6.04 | 4.08 | 2.87 | 2.12 | 1.61 | 1.25 | 1.00 | 0.68 | 0.49 | 0.36 | 0.28 | ||||||||||||||||||||||||||||||||||||||||||
15-Mar-11 |
10.73 | 8.34 | 6.85 | 5.63 | 3.58 | 2.40 | 1.68 | 1.23 | 0.92 | 0.73 | 0.48 | 0.35 | 0.26 | 0.20 | ||||||||||||||||||||||||||||||||||||||||||
15-Mar-12 |
10.73 | 8.03 | 6.32 | 5.04 | 2.89 | 1.73 | 1.10 | 0.74 | 0.52 | 0.40 | 0.26 | 0.19 | 0.15 | 0.11 | ||||||||||||||||||||||||||||||||||||||||||
15-Mar-13 |
10.73 | 7.79 | 5.58 | 4.17 | 1.88 | 0.85 | 0.41 | 0.22 | 0.14 | 0.11 | 0.08 | 0.06 | 0.05 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||
15-Mar-14 |
10.73 | 7.79 | 5.04 | 2.66 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||||||||||||||||||||||
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