Assertio ( NASDAQ: ASRT ) shares dropped ~26% pre-market on Tuesday after the specialty pharmaceutical company priced its private offering of $60M of 6.50% convertible senior notes due 2027 .
The notes will will accrue interest at a rate of 6.50% per annum, payable semi-annually in arrears on Mar. 01 and Sep. 01 of each year, beginning on Mar. 01, 2023. They will mature on Sep. 01, 2022.
The initial purchaser have been granted an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $10M principal amount of notes.
Net proceeds from the offering will be ~$56.7M (or ~$66.2M if the initial purchaser fully exercises its option to purchase additional notes). Proceeds will be used to repurchase or redeem 13% Senior Secured Notes due 2024 and for general corporate purposes
The notes will be convertible into cash, shares of Assertio’s common stock or a combination thereof at an initial conversion rate of 244.2003 shares of common stock per $1,000 principal amount of convertible notes. They can also be redeemed in whole or in part, for cash at Assertio’s option at any time, and from time to time, on or after Sep. 08, 2025.
For further details see:
Assertio stock slides after pricing convertible senior notes offering