Omeros (OMER) said Monday it has entered into agreements with certain investors to exchange $70.5 million of its existing 2026 convertible notes for new 2029 convertible notes with a higher interest rate and a conversion rate set at a 35% premium.
The exchange, extending the maturity of a large portion of Omeros' debt, is expected to close around May 14.
The company said it has also reached an agreement with another investor to convert $10 million of its existing 2026 convertible notes into shares of the company's common stock.
After the planned exchange and conversion of its 2026 convertible notes, Omeros will have about $17.4 million in principal amount of those notes still outstanding, the company said.
The new convertible notes will bear interest at 9.50% per year, payable semi-annually on June 15 and Dec. 15 starting Dec. 15, 2025, and will mature on June 15, 2029, unless converted, redeemed, or repurchased earlier.
Shares of Omeros were down 25% in recent Monday trading.
Price: 4.64, Change: -1.55, Percent Change: -25.00
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