- Ionis Pharmaceuticals (NASDAQ:IONS) has entered into privately negotiated exchange and/or subscription agreements, under which, it will issue $398M principal amount of 0.125% Convertible Senior Notes due 2024 (the "New Notes") in exchange for $340.2 principal amount of 1.00% Convertible Senior Notes due 2021 (the "Exchange Transactions") and issue $109.5M principal amount of New Notes for cash (the "Subscription Transactions").
- Following the closing of the Exchange Transactions, $344.8M principal amount of 2021 Notes will remain outstanding with terms unchanged.
- The initial conversion rate is 12.0075 common shares per $1,000 principal amount of New Notes (~$83.28/share).
- Ionis will not receive any cash proceeds from the Exchange Transactions. In exchange for issuing the New Notes, the Company will receive and cancel the exchanged 2021 Notes.
- Net cash proceeds of ~$99.2M from the Subscription Transactions will be used to pay the cost of the convertible note hedge transaction and for general corporate purposes.
- Closing date is December 19.