Intercept Pharmaceuticals Announces Convertible Notes Repurchase

Rhea-AI Summary

Intercept Pharmaceuticals (Nasdaq: ICPT) has entered into agreements to repurchase $39.9 million of its 3.25% Convertible Senior Notes due 2023 for $38.1 million. This action reduces the 2023 Notes from $460 million to $113.7 million, effectively retiring over 75% of its debt obligations due in 2023. The CEO emphasized that these efforts strengthen their cash position and focus on business execution. The repurchase is subject to customary closing conditions and reflects Intercept's proactive approach to debt management to enhance shareholder value.

Positive

• Reduced 2023 Notes from $460 million to $113.7 million, eliminating over 75% of debt obligations.
• Strengthened cash position post-repurchase, allowing focus on business execution.
• Investment in debt reduction is seen as a positive move for shareholder value.

Negative

• None.

NEW YORK, Sept. 13, 2021 (GLOBE NEWSWIRE) -- Intercept Pharmaceuticals, Inc. (Nasdaq: ICPT) (“Intercept”), a biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat progressive non-viral liver diseases, announced today that it has entered into privately negotiated agreements with certain of the holders of its existing 3.25% Convertible Senior Notes due 2023 (the “2023 Notes”) to repurchase an aggregate of $39.9 million principal amount of 2023 Notes for $38.1 million in cash. The repurchase is expected to close promptly, subject to and following customary closing conditions.

Net of this repurchase and the previously announced convertible notes exchange, Intercept’s 2023 Notes have been reduced from $460.0 million principal balance to $113.7 million principal balance. Jerry Durso, President and Chief Executive Officer, said, “With this repurchase, and our previously announced convertible notes transactions, Intercept has retired over 75% of our 2023 debt maturity obligation. We retain a strong position of cash, cash equivalents, restricted cash and investment debt securities available for sale, and the recent actions to manage our debt obligations will allow us to focus on executing our business plan.”

About Intercept

Intercept 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). Founded in 2002 in New York, Intercept has operations in the United States, Europe and Canada.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to, statements related to the 2023 Notes repurchase, Intercept’s financial position, and Intercept’s future operations and performance. These statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “possible,” “continue,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and Intercept undertakes no obligation to update any forward-looking statement except as required by law. These forward-looking statements are based on estimates and assumptions by Intercept’s management that, although believed to be reasonable, are inherently uncertain and subject to a number of risks. There can be no assurance that Intercept will be able to complete the 2023 Notes repurchase on acceptable terms, or at all. Actual results may differ materially from historical results or those anticipated or predicted by Intercept’s forward-looking statements as a result of various important factors, including, but not limited to, whether or not Intercept will be able to consummate the repurchase on the timeline or with the terms anticipated, if at all; the performance of our business, including our research and development, our regulatory approvals, and our results of operations; the impact of general U.S. and foreign economic, industry, market, regulatory or political conditions; and the other risks and uncertainties identified in Intercept’s periodic filings filed with the U.S. Securities and Exchange Commission, including Intercept’s Annual Report on Form 10-K for the year ended December 31, 2020 and Intercept’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021.

Contact

For more information about Intercept, please contact:

Lisa DeFrancesco
+1-646-565-4833
investors@interceptpharma.com

Christopher Frates
+1-646-757-2371
media@interceptpharma.com

FAQ

What is the amount of Convertible Senior Notes repurchased by Intercept Pharmaceuticals?

Intercept Pharmaceuticals repurchased an aggregate of $39.9 million principal amount of its 3.25% Convertible Senior Notes.

How much did Intercept Pharmaceuticals pay for the repurchase of the 2023 Notes?

The company paid $38.1 million in cash for the repurchase of the 2023 Notes.

What was the principal balance of the 2023 Notes before the repurchase?

Before the repurchase, the principal balance of the 2023 Notes was $460 million.

What percentage of the 2023 debt has Intercept Pharmaceuticals retired?

Intercept Pharmaceuticals has retired over 75% of its 2023 debt maturity obligation.

How will the repurchase impact Intercept Pharmaceuticals' financial position?

The repurchase is expected to strengthen Intercept's financial position, allowing the company to focus on executing its business plan.