Cryoport Announces $200 Million Repurchase Program and the Repurchase of $160 Million of Convertible Senior Notes
Cryoport announced a $200 million repurchase program for common stock and convertible senior notes, effective until December 31, 2027. The company also agreed to repurchase $160 million of its 0.75% Convertible Senior Notes due in 2026 at an 11.5% discount, valued at $141.6 million plus accrued interest. This strategic move aims to reduce the outstanding debt to approximately $186.2 million, down from an initial $402.5 million. The transactions are expected to close on August 9, 2024, subject to customary closing conditions. CEO Jerrell Shelton emphasized the company's strong cash position, which enables debt reduction while maintaining liquidity for long-term growth.
Cryoport ha annunciato un programma di riacquisto da 200 milioni di dollari per azioni ordinarie e note senior convertibili, valido fino al 31 dicembre 2027. L'azienda ha anche concordato di riacquistare note senior convertibili da 160 milioni di dollari con interesse dello 0,75% in scadenza nel 2026 con uno sconto dell'11,5%, valutato 141,6 milioni di dollari più interessi maturati. Questa mossa strategica mira a ridurre il debito in essere a circa 186,2 milioni di dollari, rispetto a un iniziale 402,5 milioni di dollari. Le transazioni sono previste per chiudere il 9 agosto 2024, soggette a condizioni di chiusura consuete. Il CEO Jerrell Shelton ha sottolineato la forte posizione di cassa dell'azienda, che consente una riduzione del debito mantenendo al contempo la liquidità per la crescita a lungo termine.
Cryoport anunció un programa de recompra de 200 millones de dólares para acciones ordinarias y notas senior convertibles, válido hasta el 31 de diciembre de 2027. La compañía también acordó recomprar notas senior convertibles por 160 millones de dólares con un interés del 0.75% que vencen en 2026 con un descuento del 11.5%, valoradas en 141.6 millones de dólares más intereses acumulados. Este movimiento estratégico tiene como objetivo reducir la deuda pendiente a aproximadamente 186.2 millones de dólares, en comparación con los iniciales 402.5 millones de dólares. Se espera que las transacciones se cierren el 9 de agosto de 2024, sujeto a condiciones de cierre habituales. El CEO Jerrell Shelton enfatizó la sólida posición de efectivo de la empresa, que permite la reducción de la deuda mientras se mantiene la liquidez para el crecimiento a largo plazo.
Cryoport는 2억 달러 규모의 자사주 매입 프로그램을 발표했으며, 이는 2027년 12월 31일까지 유효합니다. 회사는 또한 2026년에 만료되는 0.75% 전환선순위 사채 1억 6천만 달러를 11.5% 할인된 가격으로 재매입하기로 합의했으며, 이는 1억 4천 1백 60만 달러에 해당하며 이자가 발생한 금액을 포함합니다. 이 전략적 결정은 미지급 부채를 약 1억 8천 6백 20만 달러로 줄이는 것을 목표로 하고 있으며, 이는 초기 4억 2천 5백만 달러에서 감소한 것입니다. 거래는 2024년 8월 9일에 종료될 것으로 예상되며, 관례적인 마감 조건에 따라 진행됩니다. CEO인 Jerrell Shelton은 장기 성장에 대한 유동성을 유지하면서 부채를 줄일 수 있는 회사의 강력한 현금 위치를 강조했습니다.
Cryoport a annoncé un programme de rachat de 200 millions de dollars pour des actions ordinaires et des obligations senior convertibles, valable jusqu'au 31 décembre 2027. L'entreprise a également convenu de racheter 160 millions de dollars de ses obligations senior convertibles à 0,75% dues en 2026 à une remise de 11,5 %, évaluées à 141,6 millions de dollars plus intérêts courus. Ce mouvement stratégique vise à réduire la dette à environ 186,2 millions de dollars, contre 402,5 millions de dollars au départ. Les transactions devraient être finalisées le 9 août 2024, sous réserve des conditions de clôture habituelles. Le PDG Jerrell Shelton a souligné la solide position de liquidités de l'entreprise, ce qui permet une réduction de la dette tout en maintenant la liquidité pour une croissance à long terme.
Cryoport gab ein Rückkaufprogramm in Höhe von 200 Millionen Dollar für Stammaktien und wandelbare vorrangige Anleihen bekannt, das bis zum 31. Dezember 2027 gültig ist. Das Unternehmen hat außerdem zugestimmt, wandelbare vorrangige Anleihen im Wert von 160 Millionen Dollar mit 0,75% fällig im Jahr 2026 mit einem Rabatt von 11,5% zurückzukaufen, was einem Wert von 141,6 Millionen Dollar zuzüglich aufgelaufener Zinsen entspricht. Dieser strategische Schritt zielt darauf ab, die ausstehenden Schulden auf etwa 186,2 Millionen Dollar zu reduzieren, im Vergleich zu anfänglichen 402,5 Millionen Dollar. Die Transaktionen sollen am 9. August 2024 abgeschlossen werden, vorbehaltlich üblicher Abschlussbedingungen. CEO Jerrell Shelton hob die starke Liquiditätslage des Unternehmens hervor, die eine Reduzierung der Schulden bei gleichzeitiger Aufrechterhaltung der Liquidität für langfristiges Wachstum ermöglicht.
- Authorized a $200 million repurchase program for common stock and convertible notes.
- Repurchased $160 million of 0.75% Convertible Senior Notes at an 11.5% discount.
- Outstanding debt reduced to approximately $186.2 million from an initial $402.5 million.
- None.
Insights
Cryoport's
This action reduces the principal balance of the 2026 Notes from
Cryoport's repurchase program signals confidence in its financial position and potentially undervalued stock. The flexibility to repurchase both common stock and convertible notes until 2027 gives the company strategic options to manage its capital structure.
The move to reduce convertible debt is particularly noteworthy. It decreases the potential for future stock dilution, which is often a concern with convertible notes. This could be viewed positively by existing shareholders. However, the market's reaction will depend on how investors perceive the trade-off between debt reduction and the use of cash that could have been invested in growth initiatives.
As a global leader in life sciences supply chain solutions, Cryoport's financial maneuvers reflect its strong market position. The company's ability to execute such a significant debt repurchase suggests robust cash flows from its operations. This financial strength could translate into competitive advantages in the specialized logistics market.
The move to strengthen the balance sheet while maintaining "considerable liquidity" for growth plans indicates a balanced approach to financial management and expansion. This could position Cryoport well for potential market share gains or strategic acquisitions in the evolving life sciences supply chain sector.
$200 million - Repurchasing approximately
$160 million 0.75% Senior Notes due in 2026 at an11.5% discount to par value - Principal balance reduced to approximately
$186.2 million
The Company also announced that it has entered into agreements with certain holders of its
Jerrell Shelton, CEO of Cryoport, commented, "We are pleased to complete this opportunistic repurchase of our 2026 Notes. With our strong cash position, we are in a position to reduce our outstanding debt and further strengthen our balance sheet, while also maintaining considerable liquidity to support our long-term growth plans."
The Transactions are expected to close on August 9, 2024, subject to the satisfaction of customary closing conditions. Following such closings, approximately
This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any offer or sale of these securities in any state or jurisdiction in which the offer, solicitation, or sale would be unlawful prior to the registration or qualification thereof under the securities laws of any such state or jurisdiction.
About Cryoport, Inc
Cryoport, Inc. (Nasdaq: CYRX), is a global leader in supply chain solutions for the Life Sciences with an emphasis on cell & gene therapies. Cryoport enables manufacturers, contract manufacturers (CDMO's), contract research organizations (CRO's), developers, and researchers to carry out their respective business with products and services that are designed to derisk services and products and provide certainty. We provide a broad array of supply chain solutions for the life sciences industry. Through our platform of critical products and solutions including advanced temperature-controlled packaging, informatics, specialized bio-logistics services, bio-storage, bio-services, and cryogenic systems, we are "Enabling the Future of Medicine™" worldwide, through our innovative systems, compliant procedures, and agile approach to superior supply chain management.
Our corporate headquarters, located in
For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at www.x.com/cryoport for live updates.
Forward-Looking Statements
Statements in this press release which are not purely historical, including statements regarding Cryoport's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, those related to the amount of 2026 Notes to be repurchased and the timing of completion of the repurchases. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic and geopolitical conditions; changes in the convertible note and other capital markets; and other factors discussed in Cryoport's SEC reports, including in the "Risk Factors" section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and Cryoport cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, Cryoport disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.
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SOURCE Cryoport, Inc.
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