By Wendy Van Sickle
Columbus, Ohio, July 20 – Teligent Inc. closed an issuance of $13.8 million of 9.5% series C convertible notes due March 2023 and issued an additional $36 million of the convertibles to settle exchanges for two series, according to a news release.
Specifically, the company issued the $32.3 million of new convertibles to settle an exchange at a 10% discount for $35.9 million of its outstanding 7% cash/8% PIK series B senior unsecured convertible notes due 2023.
It also issued $3.7 million of new 2023 notes in exchange for $8.2 million of its outstanding 4.75% convertible senior notes due May 2023 at a 55% discount.
Interest on the new notes initially accrues at the rate of 9.5%, payable in kind by issuing additional notes.
The new notes are convertible at the option of the holder at any time prior to maturity at an initial conversion price of $2.78 per share.
In the event that Teligent undergoes a fundamental change, holders may require Teligent to purchase for cash all or any portion of their notes at par plus accrued interest.
The new notes are not redeemable by Teligent, but the company may force conversion if its per-share stock price exceeds the conversion price by 100% for a period of time after Jan. 1, 2022, subject to reduction to 75% and 50% beginning July 1, 2022 and Jan. 1, 2023, respectively.
Teligent is a specialty generic pharmaceutical company based in Buena, N.J.
| Issuer: | Teligent, Inc.
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| Issue: | Senior convertible notes
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| Amount: | $49.8 million
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| Maturity: | March 2023
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| Coupon: | 9.5%, payable in kind
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| Conversion premium: | 13.5%
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| Conversion price: | $2.78
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| Share price: | $2.45, as of close July 20
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| Settlement date: | July 20
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