Cephalon reduces debt

Cephalon has announced that it has reduced its outstanding convertible debt by $337 million (170.83 million pounds). The company exchanged $337 million of notes for cash totallying $101.6 million and the issuance of 4.3 million shares in the company.

It exchanged shares of common stock and cash for a total of $161.6 million of zero coupon convertible subordinated notes that are first putable in June 2008, with a further $175.4 million in notes first putable in June 2010.

Following these transactions, the company is adjusting its basic income per common share guidance for 2007 from $3.87-$3.97, including the impact of SFAS 123.

J Kevin Buchi, executive vice president and chief financial officer, said: “We have taken a positive step towards reducing the level of our total indebtedness through these transactions.”

He added that the company had reduced its debt by 20 per cent and would consequently have a stronger balance sheet as it enters 2007.

Last month, Cephalon reported third quarter revenues pf $482.3 million a rise of 56 per cent compared to the same period last year, attributing the strength of its figures to robust sales of Provigil (modafinil) tablets and Actiq (oral transomucal fentanyl citrate).