Vertex agrees to convert notes to common stock

CAMBRIDGE, Mass. Bondholders in a biotech company that develops drugs for such serious diseases as viral infections, cancer and cystic fibrosis have agreed to convert their notes to common stock.

Vertex Pharmaceuticals announced Monday that holders of its 4.75% convertible senior subordinated notes, which will mature in 2013, have agreed to exchange about $40.2 million worth of them for 1.9 million shares of Vertex’s common stock. Several bondholders had already agreed to exchange their notes, bringing the total amount of notes to be exchanged to $143.5 million.

The company said it expects the additional note exchanges to be finished by Thursday, reducing the principal amount of the notes to $144 million and leaving 180 million shares of common stock outstanding.