SkyePharma has confirmed the new terms for convertible bonds that had previously been casting a shadow over the firm’s ability to finance its future operations.

The revised terms for the 2024 and 2025 convertible bonds have deferred the earliest dates at which the bondholders may call for repayment, or ‘initial put dates’ to November 2013 (from 2009) and December 2014 (from 2010) respectively. The 2024 bond conversion price has been raised to 371 pence per share from 95 pence and as for the 2025 bond, the conversion price goes up to 382 pence per share from 58 pence,

The company noted that the revised terms for the bonds have been implemented following the receipt of the proceeds of the placement which raised £18.4 million after expenses. Chief executive Ken Cunningham said that this “completes the final step in the financial restructuring of SkyePharma”, noting that “it has been a long and complex task and we are very grateful to shareholders for their support throughout the process”.

The renegotiation was vital for SkyePharma as holders of the bonds could have demanded repayment of £69.6 million in May next year and a further £20 million in June 2010, which would have left the firm crippled financially. However, the company believes that there is much to look forward to, especially now that the firm’s flagship asthma combination drug Flutiform (fluticasone and formoterol) is close to filing in both the USA and Europe.

Mr Cunningham said that “now that the business has been refinanced, the board is convinced that the company can move on to deliver strong, profitable growth”.