Lexicon Pharmaceuticals to reduce debt by converting notes into shares

Chicago, Sept. 23 – Lexicon Pharmaceuticals Inc. has entered into separate, privately negotiated exchange agreements with certain holders of its 5.25% convertible senior notes due 2021 to exchange $62.55 million principal amount of the notes for cash and shares of common stock, according to a press release.

The notes will be exchanged for $41.03 million in cash, inclusive of $1.07 million in interest, and 8,746,117 shares of Lexicon’s common stock, par value $0.001 per share.

After the exchange, $24.95 million principal amount of notes will remain outstanding.

The transactions are expected to close on Sept. 28.

Lexicon’s remaining interest expense to the maturity date on the notes will be reduced by approximately $3.9 million.

Once completed, and together with other debt reductions, including the repayment of the company’s secured loan concurrent with the closing of its sale of Xermelo and related assets to TerSera Therapeutics, LLC, the company will have reduced the principal amount of its outstanding debt by 90% since June 30.

Based in the Woodlands, Texas, Lexicon is a biopharmaceutical company with clinical-stage programs for drugs to treat diseases, including diabetes and metabolism, neuropathic pain and other indications.

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