- Assertio ( NASDAQ: ASRT ) entered into separate, privately negotiated exchange agreements with a limited number of holders of Assertio's currently outstanding 6.50% Convertible Senior Notes due 2027.
- Post the exchange agreements, the company will exchange $30M principal amount of exchanged notes for a combination of a cash payment and an agreed number of shares of Assertio's common stock.
- "These transactions reduce our overall debt by $30M, or 42.9%, while consuming only $10.5M in cash (and issue ~$7M shares). In addition, the transactions will save the company $2M in annual interest payments, reduce the potential dilution from the exchanged convertible notes by 4.6%, and will be accretive to our diluted EPS by $0.02 in 2023," CEO Dan Peisert commented.
- The company will not receive any cash proceeds from the issuance of the shares.
- Transactions are expected to close on Feb.27, 2023.
- On completion, Assertio expects to have $40M principal remaining outstanding on its 6.50% convertible senior notes due 2027.
For further details see:
Assertio launches exchange offer of $30M in outstanding convertible senior notes