WALTHAM, Mass., May 15, 2017 (GLOBE NEWSWIRE) -- AMAG Pharmaceuticals, Inc. (Nasdaq:AMAG) today announced that it has paid in full the remaining balance of $321 million of its term loan, which was due in 2021. This transaction, as well as the recently announced $300 million convertible debt offering and buyback of preexisting convertible notes, are important steps in AMAG’s future growth strategy. A key tenet of this strategy is to strengthen the company’s balance sheet and better align it to the evolution of AMAG’s business by extending maturities, reducing overall debt and interest expense, and improving operating flexibility.
On May 5, 2017, AMAG announced the pricing of $300 million aggregate principal amount of 3.25 percent convertible senior notes due in 2022 in an underwritten public offering. Contemporaneously with this offering, the company repurchased $158.9 million aggregate principal amount of its existing 2.50 percent convertible senior notes due in 2019 for an aggregate repurchase price of $171.3 million, including accrued interest, with cash on hand. The company has stated that further reduction in debt, as well as stock repurchases, will be considered opportunistically.
“By extending our maturities and reducing our total debt, we believe we will have more financial flexibility to successfully launch and commercialize our two newest women’s health products – IntrarosaTM (prasterone), which will be commercially available mid-year, and bremelanotide, an investigational product – as well as continue to expand our product portfolio through acquisitions and licensing transactions,” said Ted Myles, AMAG's chief financial officer. “With the completion of these transactions and expected EBITDA generation from our business operations, including anticipated future milestone payments, we expect to end 2017 with more than $300 million of cash.”
About AMAG
AMAG is a biopharmaceutical company focused on developing and delivering important therapeutics, conducting clinical research in areas of unmet need and creating education and support programs for the patients and families we serve. Our currently marketed products support the health of patients in the areas of maternal and women's health, anemia management and cancer supportive care. Through CBR®, we also help families to preserve newborn stem cells, which are used today in transplant medicine for certain cancers and blood, immune and metabolic disorders, and have the potential to play a valuable role in the ongoing development of regenerative medicine. For additional company information, please visit www.amagpharma.com.
