AMAG Pharmaceuticals, a biopharmaceutical company, said pre-market Monday it has paid in full the remaining balance of $321 million of its term loan, which was due in 2021. This deal, as well as the recently announced $300 million convertible debt offering and buyback of pre-existing convertible notes, are important steps in AMAG’s future growth strategy, the company said.
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, AMAG priced $300 million of 3.25% convertible senior notes due in 2022 in an underwritten public offering. Contemporaneously with this offering, the company bought back $158.9 million of its existing 2.5% convertible senior notes due in 2019 for $171.3 million, including accrued interest, with cash on hand.