Auxilium Pharmaceuticals, Inc. Announces Issuance of $350.0 Million of 1.50% Convertible Senior Notes Due 2018

 Auxilium Pharmaceuticals, Inc. Announces Issuance of $350.0 Million of 1.50%
                      Convertible Senior Notes Due 2018

PR Newswire

CHESTERBROOK, Pa., Jan. 30, 2013

CHESTERBROOK, Pa., Jan. 30, 2013 /PRNewswire/ -- Auxilium Pharmaceuticals,
Inc. (Nasdaq: AUXL), a specialty biopharmaceutical company ("Auxilium"), today
announced the closing of its previously announced offering of 1.50%
Convertible Senior Notes due 2018 (the "Convertible Notes"). Auxilium issued
$350.0 million aggregate principal amount of Convertible Notes, which included
$25.0 million aggregate principal amount of Convertible Notes issued pursuant
to the exercise in full by the underwriters of their option to purchase
additional Convertible Notes, in an offering (the "Offering") registered under
the Securities Act of 1933, as amended (the "Securities Act").

(Logo: http://photos.prnewswire.com/prnh/20101202/MM10881LOGO )

The Convertible Notes will pay interest semi-annually at a rate of 1.50% per
annum on January 15 and July 15, commencing July 15, 2013. The Convertible
Notes are convertible, at the holder's option at an initial conversion rate of
41.3770 shares of Auxilium's common stock per $1,000 principal amount of
Convertible Notes, subject to adjustment in certain circumstances. Prior to
January 15, 2018, the Convertible Notes will be convertible only upon the
occurrence of certain events and during certain periods, and thereafter, will
be convertible at any time until the second scheduled trading day immediately
preceding the maturity date. Upon conversion, Auxilium will pay or deliver, as
the case may be, shares of Auxilium's common stock, cash or a combination
thereof at Auxilium's election.

The Convertible Notes are general senior unsecured obligations of Auxilium.

The net proceeds from the Offering were approximately $338.7 million after
deducting underwriters' discounts and commissions and estimated offering
expenses. Auxilium used approximately $28.5 million of the net proceeds from
the Offering to pay the cost of the note hedge transactions described below
(after such cost was partially offset by the proceeds from the sale of the
warrants, as described below) and intends to use the remainder of the net
proceeds from the Offering for general corporate purposes, which may include
the acquisition (including by merger, purchase, license or otherwise) of
businesses, products, product rights or technologies.

Goldman, Sachs & Co. and J.P. Morgan Securities LLC acted as joint
book-running managers for the Offering. Cowen and Company and RBC Capital
Markets acted as co-managers for the Offering. The Convertible Notes were
offered and sold under Auxilium's shelf registration statement on Form S-3
(Reg. No. 333-186157) filed with the Securities and Exchange Commission (the
"SEC") on January 23, 2013. Auxilium filed a final prospectus supplement
setting forth the terms of the Convertible Notes with the SEC on January 25,
2013. Investors should read the final prospectus supplement and other
documents that Auxilium has filed with the SEC for more complete information
about Auxilium and the Offering. These documents may be obtained at
www.sec.gov. Printed copies of the final prospectus supplement relating to the
Offering may also be obtained by requesting copies from Goldman, Sachs & Co.
(Attn: Prospectus Department, 200 West Street, New York, New York 10282, Fax:
212-902-9316 or Email at prospectus-ny@ny.email.gs.com or by calling
1-866-471-2526) or J.P. Morgan Securities LLC (c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by calling
866-803-9204).

In connection with the Offering, Auxilium entered into note hedge transactions
with one or more of the underwriters of the Convertible Notes or their
respective affiliates and other financial institutions (the "hedge
counterparties"). The note hedge transactions are expected generally to reduce
the potential dilution to Auxilium's common stock and/or offset potential cash
payments in excess of the principal amount upon any conversion of Convertible
Notes in the event that the market value per share of Auxilium's common stock,
as measured under the terms of the note hedge transactions, is greater than
the strike price of the note hedge transactions (which corresponds to the
initial conversion price of the Convertible Notes and is subject to certain
adjustments substantially similar to those contained in the Convertible
Notes). In addition, in order to partially offset the cost of the note hedge
transactions, Auxilium issued warrants to the hedge counterparties at a higher
strike price. The warrants would separately have a dilutive effect to the
extent that the market value per share of Auxilium's common stock exceeds the
applicable strike price of the warrants.

Auxilium has been advised that, in connection with the note hedge and warrant
transactions, the hedge counterparties or their affiliates have entered into,
or expect to enter into, various derivative transactions with respect to
Auxilium's common stock and may, from time to time, enter into or unwind
various derivatives and/or purchase or sell Auxilium's common stock or other
securities of Auxilium in secondary market transactions (and are likely to do
so during any observation period relating to a conversion of Convertible
Notes). These activities may have increased, or could increase (or reduce the
size of any decrease in), the price of Auxilium's common stock, and could also
cause or avoid an increase or a decrease in the price of Auxilium's common
stock at any time prior to the maturity date.

This press release does not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of any of the Convertible Notes
in any jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such jurisdiction. Any offer, if at all, will be made only by means of the
prospectus, including the prospectus supplement, forming a part of the
effective registration statement.

About Auxilium

Auxilium is a specialty biopharmaceutical company with a focus on developing
and marketing products to predominantly specialist audiences. Auxilium markets
Testim® 1% (testosterone gel) for the topical treatment of hypogonadism and
XIAFLEX® (collagenase clostridium histolyticum) for the treatment of adult
Dupuytren's contracture patients with a palpable cord in the U.S.
GlaxoSmithKline co- promotes Testim with Auxilium in the U.S. Ferring
International Center S.A. markets Testim in certain countries of the EU and
Paladin Labs Inc. markets Testim in Canada. Pfizer Inc. has marketing rights
for XIAPEX® (the EU tradename for collagenase clostridium histolyticum) in 46
countries in Eurasia through April 24, 2013; Asahi Kasei Pharma Corporation
has development and commercial rights for XIAFLEX in Japan; and Actelion
Pharmaceuticals Ltd has development and commercial rights for XIAFLEX in
Canada, Australia, Brazil and Mexico. The sBLA for XIAFLEX for the treatment
of Peyronie's disease was submitted to the FDA on November 6, 2012 and has
been accepted for standard review with a PDUFA date of September 6, 2013.
Additionally, collagenase clostridium histolyticum ("CCH") is in phase IIa of
development for the treatment of Frozen Shoulder syndrome (adhesive
capsulitis) and phase Ib of development for the treatment of cellulite
(edematous fibrosclerotic panniculopathy). Auxilium also has rights to pursue
additional indications for CCH.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995

This news release contains forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995, including statements made
with respect to Auxilium's strategy, progress and timing of development
programs and related trials, the efficacy of its product candidates, the
commercial benefits available to it as a result of its agreements with third
parties, future operations, financial position, future revenues, projected
costs, prospects, plans and objectives of management and other statements
regarding matters that are not historical facts, and involve predictions.
These statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance, achievements or prospects
to be materially different from any future results, performance, achievements
or prospects expressed in or implied by such forward-looking statements. In
some cases you can identify forward-looking statements by terminology such as
''may'', ''will'', ''should'', ''would'', ''expect'', ''intend'', ''plan'',
''anticipate'', ''believe'', ''estimate'', ''predict'', ''potential'',
''seem'', ''seek'', ''future'', ''continue'', or ''appear'' or the negative of
these terms or similar expressions, although not all forward-looking
statements contain these identifying words. Although forward-looking
statements are based on Auxilium's current plans or assessments that are
believed to be reasonable as of the date of this press release, they
inherently involve certain risks and uncertainties. These forward-looking
statements are subject to a number of risks and uncertainties, including those
discussed under ''Risk Factors'' in Auxilium's Annual Report on Form 10-K for
the year ended December 31, 2011, each of Auxilium's Quarterly Reports on Form
10-Q for the three months ended September 30, 2012, June 30, 2012 and March
31, 2012 and Auxilium's Current Report on Form 8-K filed with the Securities
and Exchange Commission (the "SEC") on January 23, 2013. While Auxilium may
elect to update the forward-looking statements made in this news release in
the future, Auxilium specifically disclaims any obligation to do so. Our SEC
filings may be accessed electronically by means of the SEC's home page on the
Internet at http://www.sec.gov. There may be additional risks that Auxilium
does not presently know or that Auxilium currently believes are immaterial
which could also cause actual results to differ from those contained in the
forward-looking statements.

AUXILIUM CONTACTS:

James E. Fickenscher
Chief Financial Officer, Auxilium Pharmaceuticals, Inc.
+1-484-321-5900
jfickenscher@auxilium.com

or

William Q. Sargent Jr.
Vice-President, Investor Relations and Corporate Communications
+1-484-321-5900
wsargent@auxilium.com

SOURCE Auxilium Pharmaceuticals, Inc.

Website: http://www.auxilium.com
 
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