Business
Omeros Corporation Further Strengthens its Balance Sheet through Series of Financing Transactions Extending Maturity on a Majority of its Outstanding Debt into 2028
$118.1 million, or 55%, of outstanding convertible notes due in 2026 repurchased at approximately 75% of notional value, resulting in $51 million in total
About this update from Omeros Corporation
[{"type":"text","content":"\n\n$118.1 million, or 55%, of outstanding convertible notes due in 2026 repurchased at approximately 75% of notional value, resulting in $51 million in total debt extinguishment\n\n\n\nRepurchase funded from new $67 million secured four-year term loan maturing in June 2028 together with $21 million cash on hand\n\n\n\nCredit facility includes $25 million delayed draw term loan conditionally available to fund narsoplimab commercialization\n\n\n\nTransactions include no equity component, preventing shareholder dilution, and enable additional debt reduction\n\n\n\n SEATTLE--(BUSINESS WIRE)--\nOmeros Corporation (Nasdaq: OMER) today announced that it has completed a series of strategic financial transactions, further strengthening its balance sheet and extending the maturity profile on a substantial portion of its debt from February 2026 to June 2028, while providing a secure source of capital to support potential commercialization of its lectin pathway inhibitor narsoplimab and flexibility to manage the remaining balance of 2026 convertible notes.\n\n\nToday, Omeros entered into a Credit and Guaranty Agreement with certain funds managed by Athyrium Capital Management, LP (collectively, “Athyrium”) and certain funds managed by Highbridge Capital Management, LLC (collectively, “Highbridge”) as lenders. The agreement provides for a senior secured term loan facility initially of up to $92.1 million that includes a fully funded initial term loan of $67.1 million as well as a $25.0 million delayed draw term loan. Omeros used the proceeds of the initial term loan and $21.2 million of cash on hand, subject to certain post-closing adjustments, to repurchase $118.1 million aggregate principal amount of Omeros’ existing 5.25% Convertible Senior Notes due February 15, 2026 (the “2026 Notes”) held by Athyrium and Highbridge, representing a total of 55 percent of the outstanding 2026 Notes. The blended repurchase price was 74.75 percent of par value, resulting in $51 million in total debt extinguishment. In addition, the Company retains all potential future value of the capped call purchased in connection with the issuance of the 2026 Convertible Notes covering all shares underlying the original 2026 Notes. Neither the initial term loan nor the delayed draw term loan includes any equity consideration for the lenders, preventing any shareholder ...