Subsequent Event

3 Months Ended

Mar. 31, 2013

Subsequent Event

Subsequent Event

12.  Subsequent Event

On May 3, 2013, the Company issued Convertible Senior Secured Notes due 2019 in the aggregate principal amount of $90.0 million (the “Convertible Notes”) in a private offering under the Securities Act of 1933, as amended.  The Convertible Notes are the Company’s senior secured obligations, secured by liens on substantially all of the Company’s assets. The Convertible Notes bear interest at a rate of 7.50% per year, payable semi-annually in arrears on May 1 and November 1 of each year, commencing November 1, 2013. The Convertible Notes will mature on May 1, 2019, unless earlier converted, redeemed or purchased by the Company.

The net proceeds from this offering of Convertible Notes were approximately $86.4 million, after deducting initial purchasers’ discounts and estimated offering expenses payable by the Company. The Company used approximately $19.6 million of the net proceeds to repay in full its borrowings under and terminated its secured credit facility (see Note 9) and anticipates using the remainder of the net proceeds to fund the commercialization of its approved and tentatively approved drugs, Oxtellar XR and Trokendi XR, to continue development of its pipeline products and for other general corporate purposes.  The Company anticipates recording a loss on extinguishment of the secured credit facility of approximately $1.2 million.