Intercept Pharmaceuticals Announces Summary of Key Actions in Strategic Financial Repositioning
September 21 2022 - 6:30AM
Intercept Pharmaceuticals, Inc. (Nasdaq:ICPT), a
biopharmaceutical company focused on the development and
commercialization of novel therapeutics to treat progressive
non-viral liver diseases, today announced a summary of the actions
it has taken to improve its capital position, including the
recently announced private repurchases of senior secured
convertible notes.
As a result of the following strategic financial moves to
improve its capital structure, Intercept is well-positioned to grow
its existing business in PBC, progress its NASH program, and
advance and expand its pipeline.
- August 2021 Secured Convertible Notes Exchange
- July 1st 2022 Sale of International Business
- August / September 2022 Secured Convertible Notes
Repurchases
The result of these activities has been to lower principal debt
outstanding by 54% or $388.9 million to $336.3 million and decrease
annual cash interest expense by 58% or $13.6 million to $9.8 on an
annual basis. In addition, these activities reduced overall
potential shareholder dilution associated with the secured
convertible notes, which was a key objective.
Intercept used a combination of cash from the sale of its
international business as well as stock to fund the 2022
transactions. The net result has allowed the Company to grow its
cash position to over $500 million, driving an improvement in net
debt (principal debt outstanding minus total cash) of approximately
$450 million.
Summary (In USD Millions) |
|
6/30/21 |
6/30/22 |
6/30/22 (Adjusted)* |
Total Cash** |
422.5 |
412.3 |
> 500.0 |
Principal Debt Outstanding |
690.0 |
725.2 |
336.3 |
Annual Cash Interest Expense |
19.6 |
23.4 |
9.8 |
* Based on Form 10-Q for June 30, 2022, adjusted for subsequent
activities including the sale of the international business (July
1st) and note repurchases (August / September).** Cash, cash
equivalents, restricted cash, and investment debt securities
available for sale. |
“This is a transformational time on several fronts here at
Intercept,” said Jerry Durso, President and Chief Executive Officer
of Intercept. “Now, through this series of strategic financial
transactions, we have transformed our capital structure and are
well positioned for the future. We are net debt positive for the
first time since 2019 and have the financial flexibility to propel
our business forward focusing on our core strategic imperatives of
growing our PBC franchise, progressing our NASH development
program, and advancing our pipeline products.”
About InterceptIntercept is a biopharmaceutical
company focused on the development and commercialization of novel
therapeutics to treat progressive non-viral liver diseases,
including primary biliary cholangitis (PBC) and nonalcoholic
steatohepatitis (NASH). For more information, please
visit www.interceptpharma.com or connect with the company
on Twitter and LinkedIn.
Contact For more information about Intercept,
please contact:
For investors: Nareg Sagherian, Executive Director, Global
Investor Relations Investors@interceptpharma.com
For media: Karen Preble, Executive Director, Global
Corporate Communications Media@interceptpharma.com
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