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NPS Pharmaceuticals is purchasing the notes to reduce outstanding debt andreduce interest expense. The tender offer will be funded from the proceeds ofthe company's recently completed offering of $50 million aggregate principalamount of 5.75% convertible notes due August 7, 2014, a private placement of$100 million of secured 15.5% Sensipar B Bonds due March 30, 2017 completed byits subsidiary and a $50 million up-front payment received from Drug RoyaltyL.P.3 as part of the NPS Pharmaceuticals' sale and assignment of its right toreceive royalty payments on sales of PREOTACT(R). NPS Pharmaceuticals isoffering to purchase the notes at a price of $982.50 for each $1,000 ofprincipal amount of notes tendered, plus accrued and unpaid interest up to,but not including, the date the notes are paid pursuant to the offer.
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NPS Pharmaceuticals has retained Jefferies & Company, Inc. to act asDealer Manager in connection with the offer.
U.S. Bank National Association has been appointed to act as the depositaryfor the offer, and D.F. King & Co., Inc. has been appointed to serve asinformation agent. Questions and requests for assistance and copies of theoffer to purchase and the related letter of transmittal may be directed to theinformation agent at (212) 269-5550, for banks and brokers, or (888) 644-5854for others.
Neither the NPS Pharmaceuticals Board of Directors nor any other personmakes any recommendation as to whether holders of notes should tender theirnotes, and no one has been authorized to make such a recommendation. Holdersof notes must make their own decisions as to whether to tender their notes,and, if they decide to do so, the principal amount of notes to tender.
This announcement is not an offer to buy or the solicitation of an offerto sell any notes. The tender offer for NPS Pharmaceuticals' 3.0% ConvertibleNotes due 2008 will be made solely by and subject to the terms and conditionsset forth in a Schedule TO (including an offer to purchase, related letter oftransmittal and other tender offer documents) that is being filed by NPSPharmaceuticals today with the Securities and Exchange Commission. TheSchedule TO will contain important information and should be read carefullybefore any decision is made with respect to the tender offer. The offer topurchase, letter of transmittal and other tender offer documents are beingdelivered to holders of the notes. Once the Schedule TO and other documentsare filed with the SEC, they will be available free of charge on the SEC'swebsite at http://www.sec.gov, on NPS Pharmaceuticals' website athttp://www.npsp.com or by contacting the NPS Pharmaceuticals CorporateSecretary at (800) 730-3644.
NPS Pharmaceuticals is a biopharmaceutical company focused on thedevelopment and commercialization of small molecules and recombinant proteinsas drugs, primarily for the treatment of metabolic, bone and mineral, andcentral nervous system disorders. The company has drug candidates in variousstages of clinical development. Additional information is available on thecompany's website, http://www.npsp.com.
This press release contains forward-looking statements intended toqualify for the "safe harbor" from liability established by the PrivateSecurities Litigation Reform Act of 1995. Forward-looking statements include,but are not limited to, statements relating to strategies, expectations,intentions, plans, future events, performance, underlying assumptions,
