Xeris Biopharma Holdings (NASDAQ:XERS) told investors that it and its Xeris Pharmaceuticals Inc. subsidiary have entered into separate, privately negotiated exchange agreements with certain holders of Xeris’ outstanding 5% convertible senior notes which mature in 2025.
Under the exchange transactions, which are expected to close on September 29, 2023, Xeris will exchange $31,975,000 of existing 5% notes for $33,574,000 of new 8% convertible senior notes due 2028.
“We are very pleased to have exchanged approximately two-thirds of our 5% Convertible Senior Notes due in 2025 for 8% Convertible Senior Notes due in July 2028,” Xeris’ chief financial officer Steven Pieper commented in a statement.
“Importantly, we were able to achieve this three-year extension without changing the original $3.06 conversion price. With only $15 million of the 2025 convertible notes remaining, coupled with our healthy cash position, we have created significant financial flexibility to run our business with no other debt coming due until 2027.”
Xeris noted that the new notes will bear interest at a rate of 8% per year, with interest payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2024. The new notes will mature on July 15, 2028, unless repurchased, redeemed or converted earlier.
More details can be found here.
The company's shares were up 2.2% at $1.86 in Wednesday early afternoon trade.
~Updated with share price movement~
Contact the author at stephen.gunnion@proactiveinvestors.com