ORCHARD PARK, N.Y., May 5 /PRNewswire-FirstCall/ -- MINRAD International, Inc. (Amex: BUF - News) today announced that it has entered into agreements to issue and sell an aggregate of $40.0 million of senior secured convertible notes with a group of institutional accredited investors in a private placement. The notes pay an 8% coupon, have a 3 year maturity and a conversion price of $2.65 a share. The aggregate net proceeds of the notes, after deducting the placement agents' fees and estimated offering expenses payable by MINRAD, are expected to be approximately $36.7 million. The Company plans to use the net proceeds of the financing to retire its obligations under its current $15.0 million senior notes with Laminar Direct Capital L.P. and for working capital and general corporate purposes. Lehman Brothers served as placement agent for MINRAD in the transaction.

The securities offered in the private placement were not registered under the Securities Act of 1933, as amended (the "Act") or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act and applicable state securities laws. Pursuant to the purchase agreements with the investors, the Company will file a registration statement with the U.S. Securities and Exchange Commission covering the resale of the shares of common stock issuable upon the conversion of the notes, subject to certain terms and conditions.

In connection with the private placement, the Company is reaffirming its previous guidance that revenue for the first quarter of 2008, which ended March 31, 2008, will be in the range of $11.5 to $12.0 million.

 

     Contact:  Charles R. Trego, Jr., Chief Financial Officer                 ctrego@minrad.com                 (716) 855-1068                 http://www.minrad.com