Array BioPharma Inc. (NASDAQ:ARRY) Files An 8-K Entry into a Material Definitive Agreement

Array BioPharma Inc. (NASDAQ:ARRY) Files An 8-K Entry into a Material Definitive Agreement
Item 8.01 Entry into a Material Definitive Agreement.

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Exchange Agreements

On November16, 2017, Array BioPharma entered into separate, privately negotiated exchange agreements (the “Exchange Agreements”) with a limited number of holders (“Noteholders”) of its outstanding 3.00% Convertible Senior Notes due 2020 (“2020 Notes”), to which the Company agreed to exchange (the “Exchanges”) approximately $107 million in aggregate principal amount of 2020 Notes held by the Noteholders for (i)a number of newly issued shares of its common stock (with such number rounded down to the nearest whole share for each holder) to be determined based on the volume-weighted average trading price of its common stock on November17, 2017 (the “Reference Date”) (collectively, the “Exchange Shares”), and (ii)an aggregate of $107 million in aggregate principal amount of its newly issued 2.625% Convertible Senior Notes due 2024 (the “2024 Notes”). The Company will receive no cash proceeds for the issuance of the Exchange Shares or the 2024 Notes. The principal amount of 2020 Notes to be exchanged for each $1,000 in principal amount of 2024 Notes was determined in individual negotiations between the Company and each Noteholder.

The Company anticipates that the Exchanges will be completed on or about December1, 2017, subject to satisfaction of customary closing conditions. Upon completion of the Exchanges, the aggregate principal amount of the 2020 Notes will be reduced to approximately $25.2 million.

The foregoing description of the Exchange Agreements does not purport to be complete and is qualified in its entirety by reference to the form of Exchange Agreement filed as Exhibit10.1 to this Current Report, which is incorporated by reference herein.

In connection with the issuance of the 2024 Notes, the Company will enter into an Indenture (the “Indenture”) with The Bank of New York Mellon Trust Company, N.A., as trustee. The Company will file a copy of the Indenture on a Form8-K following the closing of the Exchange.

This Current Report does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

Item 8.01 Unregistered Sales of Equity Securities

As disclosed in Item 8.01 of this Current Report on Form8-K, on November16, 2017, the Company entered into the Exchange Agreements to which the Company will, subject to the satisfaction of customary closing conditions, issue the 2024 Notes and the Exchange Shares to the Noteholders.The 2024 Notes and Exchange Shares were offered, and will be sold, to the exemption provided by Section4(a)(2)of the Securities Act of 1933, as amended (the “Securities Act”).This offer was made by the Company to no more than ten persons, each of which is an accredited investor (within the meaning of Rule501 promulgated under the Securities Act) and a qualified institutional buyer (as defined in Rule144A under the Securities Act).The Company will not receive any proceeds from the issuance of the 2024 Notes or the Exchange Shares.

Upon conversion of the 2024 Notes, the Company will pay cash and, if applicable, deliver shares of the Company’s common stock to the converting holder based on a conversion premium of approximately 32.5% above the arithmetic average of the daily volume weighted average price of the Company’s common stock as published on Bloomberg page“ARRY <equity> AQR” on the Reference Date. In connection with the Exchange, the holders who are hedging their 2020 Notes may decide to adjust their hedge positions by purchasing shares of the Company’s common stock or entering into synthetic long

positions on the Company’s common stock.These activities could have the effect of increasing, or limiting a decline in, the market price of the Company’s common stock on the Reference Date.

Additional information pertaining to the exchange of 2020 Notes for the 2024 Notes and the Exchange Shares is contained in Item 8.01 of this Current Report on Form8-K and incorporated herein by reference.

The 2024 Notes, any shares of common stock issuable upon conversion of the 2024 Notes and the Exchange Shares have not been, and will not be, registered under the Securities Act or any state securities law.The Company does not intend to file a registration statement for resale of the 2024 Notes, the shares of the common stock, if any, issuable upon conversion thereof or the Exchange Shares.

This Current Report on Form8-K does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

Item 8.01 Other Events.

On November16, 2017, the Company issued a press release announcing the Exchange described in Item 8.01 above. A copy of this press release is attached hereto as Exhibit99.1 and is incorporated by reference herein.

Item 8.01Financial Statements and Exhibits.

(d)Exhibits

See the ExhibitIndex which is hereby incorporated by reference.

EXHIBITINDEX


ARRAY BIOPHARMA INC Exhibit
EX-10.1 2 a17-27252_1ex10d1.htm EX-10.1 Exhibit 10.1   Form of Exchange Agreement   November 16,…
To view the full exhibit click here

About Array BioPharma Inc. (NASDAQ:ARRY)

Array BioPharma Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule drugs to treat patients afflicted with cancer. The Company’s programs include approximately three cancer drugs, binimetinib, encorafenib and selumetinib (partnered with AstraZeneca, PLC). Its binimetinib and encorafenib are in Phase III trials in advanced cancer patients, including the COLUMBUS trial studying encorafenib in combination with binimetinib in patients with BRAF-mutant melanoma and has initiated BEACON CRC trial to study encorafenib in combination with binimetinib and cetuximab in patients with BRAF V600E-mutant colorectal cancer (BRAFm CRC). Its selumetinib is a mitogen-activated protein kinase (MEK) inhibitor for cancer, which is in Phase III trial. Its advanced clinical-stage drugs include Filanesib, ARRY-797, ASC08/Danoprevir, Ipatasertib/GDC-0068, Motolimod/VTX-2337, LOXO-101, ONT-380/ARRY-380, GDC-0575, GDC-0994 and ARRY-382.

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