Intercept reduces debt with repurchases of $327.9M convertible notes

Aug. 19, 2022 7:51 AM ETIntercept Pharmaceuticals, Inc. (ICPT)By: Preeti Singh, SA News Editor
  • 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

Recommended For You


To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.