PDL BioPharma Announces Conversion Rate Adjustments for its Convertible Notes

PDL BioPharma PDLI today announced an adjustment to the conversion rate for: The 2.00% Convertible Senior Notes due February 15, 2012 (the 2012 Notes), effective June 9, 2011; The 2.875% Convertible Senior Notes due February 15, 2015 (the 2015 Notes), effective June 9, 2011; and The 3.75% Convertible Senior Notes due May 1, 2015 (the May 2015 Notes), effective June 6, 2011, in connection with the regular dividend to be paid on June 15, 2011, to all stockholders who own shares of PDL on June 8, 2011, the record date. The conversion rate for the 2012 Notes and the 2015 Notes, as adjusted, is 147.887 shares of common stock per $1,000 principal amount or $6.76 per share. The conversion rate for the 2012 Notes and the 2015 Notes was previously 144.474 shares of common stock per $1,000 principal amount of the 2012 Notes and the 2015 Notes. In connection with a cash dividend, the conversion rate is increased by multiplying the previous conversion rate by a fraction, the numerator of which is the average closing price of PDL's common stock for the five consecutive trading days immediately preceding the ex-dividend date of June 6, 2011, for the cash dividend, and the denominator of which is the difference of such average closing price less the dividend amount. The conversion rate for the May 2015 Notes, as adjusted, is 129.2740 shares of common stock per $1,000 principal amount or $7.74 per share. The conversion rate for the May 2015 Notes was previously 126.2985 shares of common stock per $1,000 principal amount of the May 2015 Notes. In connection with a cash dividend, the conversion rate is increased by multiplying the previous conversion rate by a fraction, the numerator of which is the average closing price of PDL's common stock for the ten consecutive trading days immediately preceding the ex-dividend date of June 6, 2011, for the cash dividend, and the denominator of which is the difference of such average closing price less the dividend amount.