Morrisville-based Salix Pharmaceuticals has announced the sale of $55 million in convertible notes to institutional investors, to add new products to its existing portfolio of gastrointestinal therapies.
The senior notes, due for repayment in 2028, will also be accompanied by options to initial purchasers to buy as much as $5 million in additional notes to cover over-allotments. The company said the notes, paying 5.5 percent, will be convertible into cash or Salix common stock.
Salix said it intends to use the cash infusion to shore up its ability to buy, license, develop and commercialize new and existing products, to provide ongoing working capital and for general corporate purposes.