Anacor Announces Proposed Offering Of $70 Mln Convertible Senior Notes Due 2021

(RTTNews) - Anacor Pharmaceuticals, Inc. (ANAC) said it intends to offer, subject to market and other considerations, $70 million aggregate principal amount of Convertible Senior Notes due 2021 in a private placement.

Anacor also intends to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $7 million aggregate principal amount of the notes, solely to cover over-allotments, if any.

In addition, certain funds affiliated with Venrock Associates, one of Anacor's affiliates, have indicated an interest in purchasing $12.0 million aggregate principal amount of notes in a concurrent private placement.

The Venrock notes are expected to be sold at the same price, and constitute part of the same series, as the convertible notes.

Anacor intends to use a portion of the net proceeds of the offering and the sale of the Venrock notes to repay in full its outstanding debt under its loan and security agreement, and to use the remaining net proceeds for general corporate purposes.

As of June 30, $30.0 million aggregate principal amount of loans was outstanding under the loan and security agreement.

The convertible notes will be general unsecured obligations of Anacor and interest will be paid semiannually.

The stock closed up 5.5 percent on Wednesday at $23.80.