- Intercept Pharmaceuticals ( NASDAQ: ICPT ) has entered into privately negotiated agreements to repurchase $327.9M of its secured convertible debt using a combination of cash and equity, the biopharmaceutical company announced on Friday .
- The repurchase is among a series of strategic financial moves undertaken by the company over the past 12 months to improve its capital structure. It will reduce Intercept's total outstanding debt by 45% and will be accretive to existing shareholders by reducing its potential share dilution by 6.3M shares.
- Net of this repurchase, the principal balance of the 2026 Notes has been reduced from $500M to $172.1M, and annual interest expense will be reduced by $11.5M to $6M.
- The transaction is expected to close promptly, subject to and following customary closing conditions. Following completion of these transactions, Intercept’s cash position will be in excess of $500M with 39.4M shares outstanding.
- Intercept ( ICPT ) shares gained 2% pre-market
For further details see:
Intercept reduces debt with repurchases of $327.9M convertible notes