NEW YORK (GenomeWeb) – NeoGenomics announced after the close of the market on Monday that it has redeemed 6,864,000 million shares of Series A Redeemable Preferred Stock held by an affiliate of General Electric Company for approximately $50.1 million.
In December 2015, NeoGenomics issued more than 14.6 million shares of its Series A Preferred Stock in conjunction with its purchase of Clarient from GE Healthcare. The preferred stock had a face value of $7.50 per share for a total liquidation value of $110 million. The redemption provisions included a discount for redemptions completed in the first four years following the date of issuance, NeoGenomics said. In late 2016, NeoGenomics redeemed 8.1 million shares of the Series A Preferred Stock for $55 million in cash.
The company has now redeemed 100 percent of the Series A Preferred Stock outstanding.
As part of the transaction announced on Monday, the shares were redeemed at $7.30 per share, reflecting $7.16 per share, which is the applicable 4.5 percent redemption discount to the original liquidation preference, plus an additional $0.14 per share in respect of accrued and unpaid dividends for 2018.
NeoGenomics also closed on a $30 million extension to its senior secured credit facility. The company used the proceeds from this facility, along with $20.5 million of cash and borrowing from its revolving credit facility, to redeem the Series A Preferred Stock and to pay certain fees and expenses, it said.
"In less than 30 months sine completing the Clarient acquisition, we have redeemed 100 percent of the $110 million preferred stock issued in conjunction with the deal, at a total redemption cost of just $105 million, using our borrowing capacity and internally generated cash flow," Douglas VanOort, company chairman and CEO said in a statement.