TetraLogic Announces Pricing Of $47 Mln Convertible Notes Offering

(RTTNews) - TetraLogic Pharmaceuticals Corp. (TLOG) Tuesday announced the pricing of its offering of $47 million in aggregate principal amount of 8 percent Convertible Senior Notes due 2019 in a private offering to qualified institutional buyers.

When issued, the notes will be the company's unsecured and unsubordinated obligations and will rank senior in right of payment to all of the company's debt that is expressly subordinated in right of payment to the notes.

It will rank equal in right of payment to any of the company's unsecured liabilities that are not so subordinated.

The notes will bear interest at a rate of 8 percent per annum, payable in cash semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15.

The notes will mature on June 15, 2019, unless earlier repurchased or converted. The company will not have the right to redeem the notes prior to maturity.

Net proceeds from this offering are expected to be around $44 million after deducting the initial purchasers' discounts and commissions and the estimated offering expenses.

The company intends to use the net proceeds to finance clinical and preclinical development activities for birinapant and suberohydroxamic acid phenyl ester, for potential future in-licensing and for working capital and general corporate purposes.

The offering is expected to close on June 23.