NEW YORK (GenomeWeb) – Sequenom today said that it has entered into privately negotiated agreements with holders of its outstanding 5 percent convertible senior notes due 2017, under which the firm will exchange $85 million in aggregate principal amount of those notes for $85 million in 5 percent convertible exchange senior notes due 2018.
It said that following the exchange, there will be $45 million in aggregate principal of the existing notes outstanding with terms of those notes unchanged. The existing notes were issued on Sept. 17, 2012.
The new notes accrue interest at 5 percent, payable semi-annually on April 1 and Oct. 1 each year, beginning on Oct. 1, 2015. The notes will mature on Jan. 1, 2018.
The conversion rate for the exchange notes initially is 216.0644 shares of Sequenom common stock per $1,000 principal amount of new notes — equivalent to an initial conversion price of approximately $4.63 per share — and is subject to adjustment, Sequenom said.
The new notes are convertible at any time prior to the third trading day immediately preceding the maturity date at the option of the holders into Sequenom common stock.
Sequenom expects to close the exchange transactions on or around June 9.
In early Thursday trade on the Nasdaq, shares of Sequenom were down around 1 percent at $3.33.