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SEATTLE - Omeros Corporation (NASDAQ:OMER), a biopharmaceutical firm currently trading at $6.18 per share, has announced the restructuring of its financial obligations by entering into exchange agreements with certain investors. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations, despite experiencing significant volatility with a 76% return over the past year. The company will exchange $70.5 million of its 5.25% Convertible Senior Notes due 2026 for newly issued 9.50% Convertible Senior Notes due 2029. This move, expected to close around Wednesday, extends the maturity of a significant portion of Omeros’ debt. InvestingPro data reveals the company’s total debt stands at $423.28 million, with a concerning debt-to-capital ratio of 0.54, highlighting the importance of this restructuring.
The newly issued notes will bear interest at 9.50% per annum, payable semi-annually, and are set to mature on June 15, 2029, unless converted or redeemed earlier. The initial conversion rate is at a 35% premium above the volume-weighted average price of Omeros’ common stock as of today, with adjustments under certain conditions.
In a parallel move, Omeros has also agreed to an equitization transaction, converting $10 million of the 2026 Convertible Notes into common stock. This transaction is anticipated to be completed by September 15, 2025, and will reduce the company’s outstanding debt by $10 million. As a result, Omeros will avoid a $20 million prepayment that would have been due in November 2025 under its 2024 Credit and Guaranty Agreement. After these transactions, the company’s potential debt repayment obligations over the next year will decrease significantly from $117.9 million to approximately $17.4 million.
Omeros has engaged financial advisors Moelis & Company LLC and Cantor Fitzgerald & Co., with Covington & Burling LLP serving as legal advisor for these transactions. The company emphasizes that the securities involved have not been registered under the Securities Act of 1933 and, therefore, may not be offered or sold in the U.S. without registration or an exemption from registration requirements.
The announcement includes forward-looking statements, which are based on current expectations and involve various risks and uncertainties that could cause actual results to differ materially. For investors seeking deeper insights into Omeros’ financial health and future prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available alongside 1,400+ other US stocks, providing essential metrics and expert analysis for informed investment decisions.
This news is based on a press release statement from Omeros Corporation.
In other recent news, Omeros Corporation reported a narrower-than-expected loss for the fourth quarter of 2024, with an earnings per share (EPS) of -$0.54, surpassing the forecasted -$0.69. The company’s net loss for the full year 2024 was $156.8 million, and they maintain over $90 million in cash and investments as of the end of the year. Omeros is in the process of resubmitting its Biologics License Application (BLA) for narsoplimab, a treatment for transplant-associated thrombotic microangiopathy (TA-TMA), to the U.S. Food and Drug Administration (FDA), with a target action date set for late September 2025. The company is also preparing to submit a marketing authorization application for narsoplimab to the European Medicines Agency within the current quarter.
Additionally, Omeros formed a clinical steering committee to advance its OncotoX biologics program targeting acute myeloid leukemia (AML), aiming to deliver toxic agents specifically to cancer cells. The OncotoX-AML therapeutic has shown high efficacy in animal models, suggesting a potential survival benefit over existing AML treatments. Furthermore, Omeros is progressing with its Phase 3 trial for zoltenobar in paroxysmal nocturnal hemoglobinuria (PNH), with data expected by the fourth quarter of 2025. The company is exploring partnerships for international markets and continues to develop its oncology and infectious disease programs.
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