Sarepta Therapeutics (NASDAQ:SRPT) saw its stock fall 3.3% in pre-market trading Thursday following the announcement of a refinancing of roughly $700 million of its 1.25% Convertible Senior Notes due 2027.
The precision genetic medicine company reached exchange agreements with select holders of the existing notes. Under these agreements, Sarepta will swap the notes for approximately $602 million in new 4.875% convertible senior notes due 2030, up to 6.7 million shares of common stock, and around $123.3 million in cash.
The new notes feature an initial conversion rate of 16.6667 shares per $1,000 principal, translating to a conversion price near $60 per share—a 191.5% premium over the August 20 closing price of $20.58.
Additionally, the company entered a private placement agreement with J. Wood Capital Advisors LLC for up to 1.4 million shares of common stock.
CEO Doug Ingram said, “This exchange marks important progress in our long-term financial strategy. 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 around August 28, 2025. After the closing, approximately $450 million in aggregate principal of the current convertible notes will remain outstanding with unchanged terms.
Sarepta Therapeutics stock price
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