ICPT - Intercept cuts debt further with deal to exchange convertible notes

• Intercept Pharmaceuticals ( NASDAQ: ICPT ), a biotech focused on liver diseases, announced exchange agreements on Friday to repurchase nearly $44.5M worth of convertible debt for cash and common stock following a similar deleveraging strategy disclosed in August.
• The privately-negotiated Exchange Agreements signed Thursday allow the company to exchange its 3.50% Convertible Senior Secured Notes due 2026.
• Per the terms, notes worth $44.5M of the principal amount will be exchanged for $22.7M in cash and ~1.7M of newly issued common stock. The deal is expected to close on Sep. 06, subject to customary closing conditions.
• The latest deal follows similar agreements ICPT announced in August to repurchase $327.9M of its secured convertible debt for cash and stock. Both transactions have cut the principal balance of the ICPT's 2026 Notes to $127.6M from $500M.
• Read: "On the bright side, Intercept'sIntercept's balance sheet is rock-solid," Seeking Alpha contributor Edward Zhang wrote last month despite a Sell rating on the stock.

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