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Investing.com -- Sarepta Therapeutics (NASDAQ:SRPT) stock declined 3.3% in pre-market trading Thursday after the company announced a refinancing of approximately $700 million of its 1.25% Convertible Senior Notes due 2027.
The precision genetic medicine company has entered into exchange agreements with a limited number of holders of its existing notes. Under the agreements, Sarepta will exchange the notes for approximately $602 million in new 4.875% convertible senior notes due 2030, up to approximately 6.7 million shares of common stock, and approximately $123.3 million in cash.
The new notes have an initial conversion rate of 16.6667 shares per $1,000 principal amount, equivalent to a conversion price of approximately $60 per share. This represents a 191.5% premium based on the August 20 closing price of $20.58 per share.
Additionally, Sarepta entered into a privately negotiated subscription agreement with J. Wood Capital Advisors LLC for the private placement of up to approximately 1.4 million shares of common stock.
"This exchange marks important progress in our long-term financial strategy," said Doug Ingram, CEO of Sarepta. "By extending the maturity of a meaningful portion of our convertible notes to 2030, we have completed a shareholder-friendly transaction that significantly enhances our balance sheet flexibility and strengthens our financial position."
The transactions are expected to close on or about August 28, 2025. Following the closing, approximately $450 million in aggregate principal amount of the existing convertible notes will remain outstanding with terms unchanged.
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