Press release
Sarepta Therapeutics Prices $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. 14, 2022 (GLOBE NEWSWIRE) -- Sarepta
About this update from Sarepta Therapeutics, Inc.
[{"type":"text","content":"With current cash and projected revenue, offering is expected to fund operations to profitability\nCAMBRIDGE, Mass., Sept. 14, 2022 (GLOBE NEWSWIRE) -- Sarepta Therapeutics, Inc. (NASDAQ:SRPT), the leader in precision genetic medicine for rare diseases, today announced the pricing of $980.0 million aggregate principal amount of convertible senior unsecured notes that will mature on September 15, 2027, unless earlier redeemed, repurchased or converted. The notes are being 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 “Act”) (the “Rule 144A offering”). Sarepta has also granted the initial purchasers of the notes an option to purchase up to an additional $150 million aggregate principal amount of notes. The sale of the notes to the initial purchasers is expected to settle on September 16, 2022, subject to customary closing conditions. An entity affiliated with a member of Sarepta’s Board of Directors has agreed to purchase $20 million aggregate principal amount of the notes in a separate concurrent private placement under Section 4(a)(2) of the Act (the “concurrent private placement” and together with the Rule 144A offering, the “offerings”). The offering of the notes in the Rule 144A offering is not conditioned upon the closing of the concurrent private placement, but the concurrent private placement is conditioned upon the closing of the Rule 144A offering. Sarepta estimates that the net proceeds of the offerings will be approximately $979.4 million (or approximately $1.1 billion if the initial purchasers’ option to purchase additional shares is exercised in full), after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by Sarepta. Sarepta intends to use $110.7 million of the net proceeds from the offerings to pay the cost of the capped call transactions described below, and approximately $248.3 million to repurchase approximately $150.6 million in aggregate principal amount 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 approximately $585.5 million of the net proceeds from the offerings to repay borrowings under, to pay accrued and unpa...