By Marisa Wong
Los Angeles, Aug. 9 – Assertio Therapeutics, Inc. said it has entered into separate privately negotiated exchange agreements with a limited number of holders of its currently outstanding 2.5% convertible notes due 2021.
Assertio will exchange about $200 million of the existing notes for a combination of new 5% convertible senior notes due Aug. 15, 2024, a cash payment plus accrued interest on the existing notes and an agreed number of shares of its common stock, according to a press release.
Assertio will issue about $120 million of new notes, pay a total of roughly $30 million in cash and issue about 15.8 million shares of its common stock in the transactions.
The company will not receive any cash proceeds from the issuance of the new notes or the shares.
The transactions are subject to customary closing conditions and are expected to close on Aug. 13.
The new notes will be convertible into cash, stock or a combination of the two, at the company’s option, at an initial conversion rate of 323.5198 shares per $1,000 principal amount of notes, equivalent to an initial conversion price of $3.09 per share.
Assertio said it also entered into an amendment to its senior secured credit agreement to facilitate the convertible note exchange transactions.
SunTrust Robinson Humphrey, Inc. acted as exchange agent.
“We have worked hard to pay down our senior secured debt and with today’s announcement we have taken a significant step toward addressing our 2021 convertible debt. Importantly, this transaction reduces our overall leverage and represents further progress in our transformation to become a leading diversified biopharmaceutical business,” president and chief executive officer Arthur Higgins said in the press release.
Assertio is a Lake Forest, Ill.-based pharmaceutical company.
New notes
| Issuer: | Assertio Therapeutics, Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $120 million
|
| Maturity: | Aug. 15, 2024
|
| Coupon: | 5%
|
| Conversion price: | $3.09
|
| Conversion rate: | 323.5198
|
| Settlement date: | Aug. 13
|
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