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

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