Guardant Health Announces Debt Exchange Transactions
Guardant Health (Nasdaq: GH) announced a debt exchange transaction on February 6, 2025, where it will issue $600 million of 1.25% Convertible Senior Notes due 2031 in exchange for retiring approximately $659.3 million of its outstanding 0% Convertible Senior Notes due 2027.
The new notes will have an initial conversion rate of 16.0716 shares per $1,000 principal amount, representing a conversion price of $62.22 per share with a 35% premium. After the transaction closes around February 14, 2025, approximately $490.7 million of 2027 Notes will remain outstanding.
Additionally, Guardant Health plans to repurchase approximately $45 million of its common stock, while the exchange agent intends to purchase approximately $35 million of shares from transaction participants.
Guardant Health (Nasdaq: GH) ha annunciato una transazione di scambio di debito il 6 febbraio 2025, in cui emetterà $600 milioni di Note Senior Convertibili al 1,25% in scadenza nel 2031 in cambio dell'estinzione di circa $659,3 milioni delle sue Note Senior Convertibili allo 0% in scadenza nel 2027.
Le nuove note avranno un tasso di conversione iniziale di 16,0716 azioni per ogni $1.000 di capitale, con un prezzo di conversione di $62,22 per azione, con un premio del 35%. Dopo la conclusione della transazione intorno al 14 febbraio 2025, resteranno circa $490,7 milioni di Note del 2027 ancora in circolazione.
Inoltre, Guardant Health prevede di riacquistare circa $45 milioni delle proprie azioni ordinarie, mentre l'agente di scambio intende acquistare circa $35 milioni di azioni dai partecipanti alla transazione.
Guardant Health (Nasdaq: GH) anunció una transacción de intercambio de deuda el 6 de febrero de 2025, donde emitirá $600 millones de Notas Senior Convertibles del 1,25% con vencimiento en 2031 a cambio de la jubilación de aproximadamente $659,3 millones de sus Notas Senior Convertibles al 0% con vencimiento en 2027.
Las nuevas notas tendrán una tasa de conversión inicial de 16,0716 acciones por cada $1,000 de capital, representando un precio de conversión de $62,22 por acción con una prima del 35%. Después de que la transacción se cierre alrededor del 14 de febrero de 2025, quedarán aproximadamente $490,7 millones de Notas de 2027 pendientes.
Además, Guardant Health planea recomprar aproximadamente $45 millones de sus acciones ordinarias, mientras que el agente de intercambio tiene la intención de comprar aproximadamente $35 millones de acciones de los participantes en la transacción.
Guardant Health (Nasdaq: GH)는 2025년 2월 6일 부채 교환 거래를 발표했으며, 2031년에 만기가 도래하는 1.25% 전환 선순위 채권 $6억 달러를 발행하여 2027년에 만기가 도래하는 약 $6억5930만 달러의 기존 0% 전환 선순위 채권을 상환할 예정입니다.
새로운 채권은 $1,000의 원금 당 16.0716주로 전환할 수 있는 초기 전환율을 가지며, 주당 $62.22의 전환가격과 35%의 프리미엄이 포함됩니다. 2025년 2월 14일경 거래가 마감된 후, 2027채권의 약 $4억9070만 달러가 여전히 남아있게 됩니다.
추가로, Guardant Health는 자사의 일반주식 약 $4천5백만 달러를 재매입할 계획이며, 교환 대행자는 거래 참여자로부터 약 $3천5백만 달러의 주식을 구매할 예정입니다.
Guardant Health (Nasdaq: GH) a annoncé une opération d'échange de dette le 6 février 2025, où elle émettra 600 millions de dollars de Notes Senior Convertibles à 1,25% arrivant à échéance en 2031 en échange du remboursement d'environ 659,3 millions de dollars de ses Notes Senior Convertibles à 0% arrivant à échéance en 2027.
Les nouvelles notes auront un taux de conversion initial de 16,0716 actions pour 1 000 $ de montant principal, représentant un prix de conversion de 62,22 $ par action avec une prime de 35%. Après la clôture de la transaction autour du 14 février 2025, environ 490,7 millions de dollars de notes de 2027 resteront en circulation.
De plus, Guardant Health prévoit de racheter environ 45 millions de dollars de ses actions ordinaires, tandis que l'agent d'échange a l'intention d'acheter environ 35 millions de dollars d'actions auprès des participants à la transaction.
Guardant Health (Nasdaq: GH) gab am 6. Februar 2025 eine Transaktion zum Austausch von Schulden bekannt, in der $600 Millionen von 1,25% wandelbaren vorrangigen Anleihen mit Fälligkeit 2031 ausgegeben werden, um etwa $659,3 Millionen seiner ausstehenden 0% wandelbaren vorrangigen Anleihen mit Fälligkeit 2027 abzubauen.
Die neuen Anleihen haben eine anfängliche Umwandlungsrate von 16,0716 Aktien pro $1.000 Hauptbetrag, was einem Umwandlungspreis von $62,22 pro Aktie und einer Prämie von 35% entspricht. Nach Abschluss der Transaktion rund um den 14. Februar 2025 werden etwa $490,7 Millionen der 2027-Anleihen weiterhin ausstehend sein.
Darüber hinaus plant Guardant Health, etwa $45 Millionen seiner Stammaktien zurückzukaufen, während der Austauschagent plant, etwa $35 Millionen an Aktien von den Transaktionsbeteiligten zu kaufen.
- Reduction of outstanding debt by approximately $59.3 million through the exchange
- Extension of debt maturity from 2027 to 2031, improving debt structure
- $80 million total share repurchase program demonstrates confidence in company value
- New notes carry 1.25% interest rate compared to 0% on previous notes
- Potential dilution risk with conversion price set at $62.22 per share
Insights
This debt exchange transaction represents a sophisticated financial engineering move that warrants careful analysis. The exchange of
The new notes' conversion price of
This refinancing achieves several strategic objectives:
- Reduces overall debt burden by
$59.3M - Extends maturity runway by 4 years
- Returns capital to shareholders through repurchases
- Maintains substantial convertible note capacity with
$490.7M of 2027 notes still outstanding
The timing of this transaction appears opportune, executed during a period of relatively stable interest rates. The company's ability to negotiate this exchange suggests strong relationships with institutional holders and confidence in its long-term prospects. However, investors should note the introduction of cash interest payments will impact future cash flows, though this is partially offset by the lower principal amount.
In connection with the Transactions, Guardant Health intends to repurchase approximately
Additional information regarding this announcement may be found in a Current Report on Form 8-K that Guardant Health intends to file today with the
J. Wood Capital Advisors LLC acted as exchange agent to Guardant Health in connection with the Transactions.
The New Notes and any shares of common stock issuable upon conversion of the New Notes have not been registered under the Securities Act of 1933, as amended, or any state securities law and may not be offered or sold in
About Guardant Health
Guardant Health is a leading precision oncology company focused on guarding wellness and giving every person more time free from cancer. Founded in 2012, Guardant is transforming patient care and accelerating new cancer therapies by providing critical insights into what drives disease through its advanced blood and tissue tests, real-world data and AI analytics. Guardant tests help improve outcomes across all stages of care, including screening to find cancer early, monitoring for recurrence in early-stage cancer, and treatment selection for patients with advanced cancer.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding the closing of the Transactions and the effect of the Transactions and Share Repurchases on Guardant Health’s common stock, which involve risks and uncertainties that could cause the actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions, and actual outcomes and results could differ materially from these statements due to a number of factors. These and additional risks and uncertainties that could affect Guardant Health’s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the year ended December 31, 2023, and in its other reports filed with or furnished to the Securities and Exchange Commission thereafter. The forward-looking statements in this press release are based on information available to Guardant Health as of the date hereof, and Guardant Health disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing Guardant Health’s views as of any date subsequent to the date of this press release.
Source: Guardant Health, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250207317853/en/
Investor Contact:
Zarak Khurshid
investors@guardanthealth.com
Media Contact:
Melissa Marasco
press@guardanthealth.com
+1 650-647-3711
Source: Guardant Health, Inc.
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