VANCOUVER, May 12 /CNW/ - Angiotech Pharmaceuticals, Inc. ("Angiotech"
or the "Company") announced today that, together with certain of its
Canadian and United States subsidiaries (collectively, the "Angiotech
Entities"), it has successfully implemented the second amended and
restated plan of compromise or arrangement (as amended, the "Amended
Plan") under the Companies' Creditors Arrangement Act (Canada) (the "CCAA") as previously approved by the Supreme Court of
British Columbia on April 6, 2011. Consequently, the US$250 million
7.75% senior subordinated notes due 2014 (the "Subordinated Notes")
have been cancelled and eliminated in exchange for the issuance of new
common shares of Angiotech to the holders of such Subordinated Notes.
With the conclusion of this transaction, Angiotech has substantially
reduced its long-term debt obligations and strengthened its balance
sheet and liquidity outlook.
In addition, in connection with the implementation of the Amended Plan,
the following individuals have been appointed as the new board of
directors of the Company: William Hunter, Omar Vaishnavi, Donald Casey,
Jeffrey Goldberg, Bradley Karro, and Kurt Cellar.
Thomas Bailey, Chief Financial Officer of Angiotech said, "We are
pleased to have successfully completed our recapitalization
transaction, and to have finally achieved our long-term debt reduction
goals. The conclusion of this process will strengthen our company's
financial outlook and competitive position."
Dr. William Hunter, President and CEO of Angiotech said, "We would like
to offer our sincerest thanks to our employees, customers, suppliers,
lenders and other various stakeholders who strongly supported our
Company throughout this process, allowing us to continue our business
initiatives as usual and thereby provided us with a solid foundation
for the future."
The Company also announced today that it has completed its offer (the
"Exchange Offer") to exchange new senior secured floating rate notes
due 2013 for all of its outstanding Senior Floating Rate Notes due 2013
(the "Existing Floating Rate Notes"). The Exchange Offer expired at
12:00 a.m., New York City time, on May 12, 2011. A total of
$324,975,000 aggregate principal amount of the Existing Floating Rate
Notes were validly tendered and accepted for exchange by the Company.
The Existing Floating Rate Notes that were validly tendered and
accepted for exchange by the Company constitute 99.99% of the
outstanding aggregate principal amount of the Existing Floating Rate
In connection with the Exchange Offer and related consent solicitation
for the Existing Floating Rate Notes, Angiotech entered into a
supplemental indenture (the "Supplemental Indenture"), which amends the
Indenture, dated as of December 11, 2006, among Angiotech, the
guarantors named therein and Deutsche Bank National Trust Company, as
trustee, relating to the Existing Floating Rate Notes (the
"Indenture"). The Supplemental Indenture eliminates substantially all
of the covenants and certain events of default and related provisions
contained in the Indenture.
Further information about the Angiotech Entities' restructuring process
can be found at www.angiotech.com and on the website of the Monitor, at http://www.alvarezandmarsal.com/angiotech.
Forward Looking Statements
Statements contained in this press release that are not based on
historical fact, including without limitation statements containing the
words "believes," "may," "plans," "will," "estimates," "continues,"
"anticipates," "intends," "expects" and similar expressions, constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and constitute
"forward-looking information" within the meaning of applicable Canadian
securities laws. All such statements are made pursuant to the "safe
harbor" provisions of applicable securities legislation.
Forward-looking statements may involve, but are not limited to,
comments with respect to our objectives and priorities for the
remainder of 2011 and beyond, our strategies or future actions, our
targets, expectations for our financial condition and the results of,
or outlook for, our operations, research and development and product
and drug development. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, events or developments to be materially different from
any future results, events or developments expressed or implied by such
forward-looking statements. Many such known risks, uncertainties and
other factors are taken into account as part of our assumptions
underlying these forward-looking statements and include, among others,
the following: general economic and business conditions in the United
States, Canada and the other regions in which we operate; uncertainty
involved in Court proceedings and the implementation of the Amended
Plan under the CCAA; market demand; technological changes that could
impact our existing products or our ability to develop and
commercialize future products; competition; existing governmental
legislation and regulations and changes in, or the failure to comply
with, governmental legislation and regulations; availability of
financial reimbursement coverage from governmental and third-party
payers for products and related treatments; adverse results or
unexpected delays in pre-clinical and clinical product development
processes; adverse findings related to the safety and/or efficacy of
our products or products sold by our partners; decisions, and the
timing of decisions, made by health regulatory agencies regarding
approval of our technology and products; the requirement for
substantial funding to conduct research and development, to expand
manufacturing and commercialization activities; and any other factors
that may affect our performance. In addition, our business is subject
to certain operating risks that may cause any results to differ
materially from our actual results. These operating risks include: our
ability to attract and retain qualified personnel; our ability to
successfully complete pre-clinical and clinical development of our
products; changes in our business strategy or development plans; our
failure to obtain patent protection for discoveries; loss of patent
protection resulting from third-party challenges to our patents;
commercialization limitations imposed by patents owned or controlled by
third parties; our ability to obtain rights to technology from
licensors; liability for patent claims and other claims asserted
against us; our ability to obtain and enforce timely patent and other
intellectual property protection for our technology and products; the
ability to enter into, and to maintain, corporate alliances relating to
the development and commercialization of our technology and products;
market acceptance of our technology and products; our ability to
successfully manufacture, market and sell our products; the
availability of capital to finance our activities; our ability to
restructure and to service our debt obligations; and any other factors
referenced in our other filings with the applicable Canadian securities
regulatory authorities or the Securities and Exchange Commission
("SEC"). For a more thorough discussion of the risks associated with
our business, see the "Risk Factors" section in our annual report for
the year ended December 31, 2010 filed with the SEC on Form 10-K.
Given these uncertainties, assumptions and risk factors, investors are
cautioned not to place undue reliance on such forward-looking
statements. Except as required by law, we disclaim any obligation to
update any such factors or to publicly announce the result of any
revisions to any of the forward-looking statements contained in this
press release to reflect future results, events or developments.
©2011 Angiotech Pharmaceuticals, Inc. All Rights Reserved.
Angiotech Pharmaceuticals, Inc. is a global specialty pharmaceutical and
medical device company. Angiotech discovers, develops and markets
innovative treatment solutions for diseases or complications associated
with medical device implants, surgical interventions and acute injury.
To find out more about Angiotech, please visit our website at www.angiotech.com.
SOURCE Angiotech Pharmaceuticals, Inc.
For further information:
Investor Relations and Corporate Communications
Angiotech Pharmaceuticals, Inc.