Guardant Health (GH) said Friday that it agreed with some creditors a day earlier to exchange $600 million worth of newly issued 1.25% convertible senior notes due 2031 for $659.3 million worth of outstanding 0% Convertible Senior Notes due 2027.
The initial conversion rate of the new notes will be 16.0716 shares of Guardant Health per $1,000 of principal, or an initial conversion price of about $62.22 per share, a conversion premium of about 35% over the last reported sale price on Thursday, the company said.
The exchanges are expected to close on Feb. 14.
In connection with the transactions, Guardant Health said it plans to repurchase about $45 million of shares from some exchange participants at the Feb. 6 price. The deal's exchange agent also plans to purchase around $35 million worth of shares.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.