Press release
Sarepta Therapeutics Announces Proposed Offering of $1.0 Billion of Convertible Senior Notes Due 2027
– With current cash and projected revenue, offering is expected to fund operations to profitability CAMBRIDGE, Mass., Sept. 12, 2022 (GLOBE NEWSWIRE) --
About this update from Sarepta Therapeutics, Inc.
[{"type":"text","content":"– With current cash and projected revenue, offering is expected to fund operations to profitability CAMBRIDGE, Mass., Sept. 12, 2022 (GLOBE NEWSWIRE) -- Sarepta Therapeutics, Inc. (NASDAQ:SRPT), the leader in precision genetic medicine for rare diseases, today announced that it intends to offer, subject to market and other conditions, $1.0 billion aggregate principal amount of convertible senior unsecured notes that will mature on September 15, 2027, unless earlier redeemed, repurchased or converted. The notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Rule 144A offering”). Sarepta also expects to grant the initial purchasers of the notes an option to purchase up to an additional $150 million aggregate principal amount of notes. Sarepta intends to use a portion of the net proceeds from the offerings to pay the cost of certain capped call transactions (described below) and to repurchase a portion of its 1.50% Convertible Senior Notes due 2024 (the “2024 Notes”), inclusive of any applicable premium and accrued interest (described below). In addition, Sarepta intends to use a portion of the net proceeds from the offerings to repay borrowings and accrued and unpaid interest, to pay the prepayment premium under, and terminate, its credit agreement and the remaining net proceeds to fund general corporate purposes. Sarepta believes that, along with current cash and projected revenue, this offering is sufficient to fund operations to profitability. The notes will be senior, unsecured obligations of Sarepta and bear cash interest, payable on March 15 and September 15 of each year, beginning on March 15, 2023. The notes will be convertible, only during certain periods and subject to certain circumstances, into cash, shares of Sarepta common stock, or a combination of cash and shares of Sarepta common stock, at Sarepta’s election. Prior to September 20, 2025, the notes will not be redeemable. On or after September 20, 2025 and on or before the 41st scheduled trading day immediately preceding the maturity date, Sarepta may redeem for cash all or part of the notes (subject to certain conditions), at its option, if the last reported sale price of Sarepta’s common stock has been at least 130% of the conversion price t...