Affymetrix Settles Bond Holder Suit, Affecting Acquisition
Tang Capital alleged that Affymetrix was using the $95.5 million as collateral for the acquisition, giving priority for the cash to those financing the acquisition rather than Note holders. Affymetrix announced in November 2011 that it planned to finance the acquisition with 50% cash on hand and 50% committed debt and that it had obtained a fully underwritten senior secured financing commitment for $190 million. As of October 31, 2011, Affymetrix had cash holdings of $32.4 million.
Washington, DC 1/25/12—Affymetrix announced in an SEC filing that it has agreed to settle a class-action suit brought by Tang Capital Partners, in which Tang alleged Affymetrix had violated the terms of its Senor Convertible Notes (see IBO 12/31/11). As part of the settlement, Affymetrix will commence a tender offer within two weeks to repurchase the Notes’ $95.5 million aggregate principal amount plus accrued interest. Tang Capital, which holds a $78.3 million principal amount, has agreed to tender the Notes. Affymetrix is now expected to restructure the financing arrangements for its acquisition of eBioscience (see IBO 11/30/11).
