- Sientra ( NASDAQ: SIEN ) rushed to reset its convertible notes financing at premiums as heavy as 272% of the stock's last close.
- The medical aesthetics firm Sientra told Wednesday it has entered into a $23M new senior secured convertible note refinancing with Deerfield Management at a conversion price of $1, representing a 35% premium on stock's last close. Also, the existing convertible note deal is amended to reduce the debt load by $10M to $50M at reset conversion price of $2.75, a whopping 272% premium on stock's close of $0.74.
- Maturity date for the existing notes is extended by 12 months to March 2026.
- "Proceeds from the financing are to be used to retire existing $21M senior secured term loan facility in full, and related financing expenses," the company said.
- On results front, Sientra reported its third quarter preliminary estimate at $21.5-$22.5M (+10-15%) compared to $21.65M consensus.
- The company is also reiterating prior full year 2022 revenue guidance of $90-95M vs. consensus of $90.85M.
- Net cash and cash equivalents anticipated to be $19M and free cash flow to range between $3 to $4M at the end of Q3 2022.
- "Our growth was driven by robust reconstruction demand and continued market share gains in augmentation. We look forward to continuing this momentum into 2023 and beyond as we prepare to launch our new fat transfer product and ground-breaking Allox2® PRO tissue expander," commented Sientra’s President and Chief Executive Officer Ron Menezes.
- Seeking Alpha's Quant Rating system assigns Strong Sell to SIEN , which sets the stock analysis stand apart from Wall Street's Strong Buy.
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Sientra refinances convertible debt at heavy premiums, sees Q3 revenue in-line