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Assertio Announces Exchange Offer of $30 Million of its Currently Outstanding 6.50% Convertible Senior Notes Due 2027
LAKE FOREST, Ill., Feb. 23, 2023 (GLOBE NEWSWIRE) -- Assertio Holdings, Inc. (“Assertio”) (NASDAQ: ASRT), a specialty pharmaceutical company offering
About this update from Assertio Holdings, Inc.
[{"type":"text","content":"LAKE FOREST, Ill., Feb. 23, 2023 (GLOBE NEWSWIRE) -- Assertio Holdings, Inc. (“Assertio”) (NASDAQ: ASRT), a specialty pharmaceutical company offering differentiated products to patients, today announced it has entered into separate, privately negotiated exchange agreements (the “Exchange Agreements”) with a limited number of holders of Assertio’s currently outstanding 6.50% Convertible Senior Notes due 2027 (the “Exchanged Notes”). “Our preliminary 2022 results reported earlier this week demonstrated strong cash flows from operations, leading to this opportunity to improve our balance sheet even as we continue to evaluate new growth opportunities,” said Dan Peisert, Chief Executive Officer. “These transactions reduce our overall debt by $30.0 million, or 42.9%, while consuming only $10.5 million in cash. In addition, the transactions will save the Company $2.0 million in annual interest payments, reduce the potential dilution from the exchanged convertible notes by 4.6%, and will be accretive to our diluted EPS by $0.02 in 2023.” Pursuant to the Exchange Agreements, Assertio will exchange $30.0 million aggregate principal amount of Exchanged Notes for a combination of (a) a cash payment and (b) an agreed number of shares of Assertio’s common stock. Assertio will pay an aggregate of $10.5 million in cash and issue an aggregate of approximately 7.0 million shares of its common stock in the transactions. Assertio will not receive any cash proceeds from the issuance of the shares of its common stock. The transactions are subject to customary closing conditions and are expected to close on February 27, 2023. The shares of Assertio’s common stock will be issued in private placements exempt from registration in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). Upon completion of the transactions, Assertio expects to have $40.0 million aggregate principal remaining outstanding on its 6.50% Convertible Senior Notes due 2027. SVB Securities LLC acted as Sole Exchange Agent and Financial Advisor to Assertio in connection with the transactions and Gibson, Dunn & Crutcher LLP acted as legal counsel to Assertio. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such off...