ISTA Pharma completes $40M placing

ISTA Pharmaceuticals of the USA says that it has completed a previously-announced private placement of $40.0 million in aggregate principal amount of senior subordinated convertible notes to several institutional accredited investors. The net proceeds were approximately $37.0 million, after payment of placement agent fees and estimated offering expenses.

The private placement was made only to institutional accredited investors in accordance with Section 4(2) under the Securities Act of 1933 and the rules and regulations promulgated thereunder. The securities sold have not been registered under the Securities Act of 1933 or any state securities laws and unless so registered may not be offered or sold in the USA except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933 and applicable state securities laws.

In connection with the placement, ISTA has agreed to file a registration statement to register for resale the common stock issuable upon the conversion of the senior subordinated convertible notes sold in the private issue.