PDL BioPharma Board of Directors Increases Share and Note Repurchase Authorization to $275 Million

On December 16, 2019 PDL BioPharma, Inc. ("PDL" or the "Company") (Nasdaq: PDLI) reported that its Board of Directors has authorized a $75 million increase to the $200 million common stock and convertible notes repurchase authorization that was previously announced on December 9, 2019, for a total of $275 million (Press release, PDL BioPharma, DEC 16, 2019, View Source [SID1234552385]).

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On December 13, 2019, the Company announced it entered into separate, privately negotiated exchange agreements pursuant to which it is exchanging approximately 80% of its outstanding 2.75% Convertible Senior Notes for $98.0 million in cash and 13.4 million shares of Company common stock. The cash and common stock to be distributed by PDL in this exchange will utilize approximately $143.8 million of the original $200 million authorization based on the closing price of PDL’s common stock on December 12, 2019.

Dominique Monnet, President and CEO of PDL, said, "The note exchange we announced last week was an important step towards optimizing our ability to monetize assets and return the net proceeds to our shareholders. By repurchasing approximately 80% of our convertible notes, we have made our assets more attractive to potential buyers. This may also increase the monetization proceeds that will flow to our shareholders. Today’s increased authorization will enable us to augment our efforts with common stock repurchases or additional note repurchases as we execute our strategic plan."

Purchases may be made in open-market transactions, in block transactions on or off an exchange, in privately negotiated transactions or by other means as determined by PDL’s management and in accordance with the regulations of the Securities and Exchange Commission. The repurchase program does not obligate PDL to acquire any specific number of shares or notes and may be suspended or terminated at any time.

BofA Securities is acting as financial advisor to PDL in connection with the repurchase program.