PDL BioPharma Announces Developments Related to LENSAR Debt Investment, Will Receive ~$12.5 In Alphaeon Common Stock

PDL BioPharma, Inc. (PDL)

today announced recent developments related to its debt investment in LENSAR, Inc. (LENSAR), a leading global developer and manufacturer of Femtosecond Cataract Lasers. As announced by ALPHAEON Corporation (ALPHAEON), a definitive agreement between a subsidiary of ALPHAEON and LENSAR was signed whereby the subsidiary of ALPHAEON will acquire substantially all the assets of LENSAR. ALPHAEON is a private company focused on cash-pay patients in ophthalmology and dermatology. Closing of the transaction is subject to the satisfaction of certain conditions. Upon closing, ALPHAEON's subsidiary will pay a combination of cash, stock and assumed debt in consideration for the acquisition. Upon the closing of the acquisition, ALPHAEON'S subsidiary will assume $42 million of debt in the form of an amended and restated credit agreement between PDL and ALPHAEON'S subsidiary. In addition, PDL will receive $12.5 million in ALPHAEON common stock. Terms of the amended and restated credit agreement are similar to PDL's original agreement with LENSAR. PDL will have a first lien security interest in substantially all of the assets of the newly created subsidiary of ALPHAEON. "As we previously announced, we have been working with LENSAR over the past few months to come to a positive resolution," said John P. McLaughlin, president and chief executive officer of PDL. "We are pleased with this outcome which puts our investment back on the path to positive returns."