Conned purchases ~$645.2M of conv sr notes due 27 from holders

Sarepta Therapeutics, Inc. (NASDAQ: SRPT) has repurchased approximately $645.2 million of convertible senior notes due 2027 from holders, as part of broader financing activities announced in September 2022. The company issued $980 million in new convertible senior unsecured notes with a maturity date of September 15, 2027, and secured an additional $150 million option for the initial purchasers to purchase more notes if desired. The net proceeds from the offering were allocated to various uses, including repurchasing existing debt and funding corporate operations.

As part of the offering, Sarepta repurchased approximately $150.6 million in aggregate principal amount of its 2024 Notes for $248.3 million in cash, including applicable premiums and accrued interest. The company also entered into capped call transactions to mitigate potential dilution from the conversion of the new notes. These transactions were structured to limit the impact on Sarepta’s common stock in the event of conversion.

The repurchase of the 2027 notes was conducted concurrently with the pricing of the new notes and involved separate, privately negotiated transactions with certain holders. Sarepta expects that these repurchases, along with the termination of a portion of existing capped call transactions, will reduce future equity dilution and provide flexibility in managing its capital structure.

The company has stated that, with current cash reserves and projected revenue, the offering is expected to fund operations until it reaches profitability. The notes carry a 1.25% interest rate, with conversion features tied to the company’s stock price. The offering was conducted under exemptions from registration requirements under the Securities Act of 1933.