ObsEva to retire $31M in debt and announces $11M debt refinancing

Aug. 01, 2022 7:48 AM ETObsEva SA (OBSV)By: Khyathi Dalal, SA News Editor
  • ObsEva (NASDAQ:OBSV) announced the early retirement of $31M in debt partially owed to certain funds and accounts managed by JGB Management post its securities purchase agreement.
  • The company has also entered into an amendment and forbearance agreement with respect to the outstanding debt held by JGB.
  • Under agreement terms, ObsEva and JGB agreed to apply the $31M cash earlier held as collateral in a control account against the outstanding convertible notes on a pro rata basis, with JGB waiving a 25% prepayment penalty on the early debt retirement.
  • JGB has agreed to forbear for a period of up to three months from enforcing any rights or remedies under the notes.
  • In exchange, $1.5M was added to the outstanding principal balance under the notes, leading to ~$11M of convertible notes outstanding, and the conversion price of the notes was adjusted to a conversion price of $0.26/share.
  • Shares trading 1.6% higher premarket.

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