August 24, 2012
As part of the restructuring, the holders will receive 48 percent of the equity of SkyePharma through a mandatory conversion of £20 million of bonds with the terms of three remaining series of £60 million of convertible bonds being amended to form a single, non-convertible series of bonds with amended put and call provisions and interest deferral and clawback features. The aim of the restructuring is to alleviate SkyePharma's short-term liquidity demands and better align its repayment obligations with its cash generative potential, whilst at the same time providing the bondholders with the possibility of enhanced returns.
SkyePharma is a U.K.-listed, specialist drug delivery company developing oral and inhalation products.
The SkyePharma convertible bond restructuring follows a number of convertible bond restructuring mandates for the London office, including those of Gold One International, Heritage Oil, Cambrian Mining and GHCL, acting for creditors, and General Motors, Blue City Investments and Excel Step, acting for issuers.
The Weil team advising the bondholders included London Corporate partner Ian Hamilton and Capital Markets associates James Cousins, Lauren Pau and James Crook. Clifford Chance and Linklaters acted for SkyePharma. Jefferies was the restructuring advisor to SkyePharma.