Intercept Pharmaceuticals Announces Summary of Key Actions in Strategic Financial Repositioning

Rhea-AI Summary

Intercept Pharmaceuticals (Nasdaq: ICPT) has successfully reduced its outstanding debt by 54% or $388.9 million, bringing total debt down to $336.3 million. Additionally, the company decreased its annual cash interest expense by 58% to $9.8 million. These measures, including a private repurchase of senior secured convertible notes and the sale of its international business, enhance Intercept's capital structure and position it for growth in its PBC franchise and progress in its NASH program. The company’s cash position exceeds $500 million, creating a net debt positive situation for the first time since 2019.

Positive

• Debt reduced by 54% or $388.9 million, now totaling $336.3 million.
• Annual cash interest expense decreased by 58% to $9.8 million.
• Cash position increased to over $500 million.
• Net debt positive for the first time since 2019.

Negative

• None.

Outstanding debt reduced by 54% or $388.9 million and annual cash interest expense reduced by 58% or $13.6 million

Company well-positioned to drive continued growth in PBC, progress NASH program, expand and advance pipeline

MORRISTOWN, N.J., Sept. 21, 2022 (GLOBE NEWSWIRE) -- 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 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). 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

FAQ

What were Intercept Pharmaceuticals' recent financial improvements as of September 2022?

Intercept Pharmaceuticals reported a 54% reduction in outstanding debt, lowering it to $336.3 million, and decreased annual cash interest expense by 58% to $9.8 million.

How did Intercept Pharmaceuticals improve its cash position?

The company improved its cash position to over $500 million through the sale of its international business and private repurchases of convertible notes.

What strategic actions did Intercept Pharmaceuticals take in 2022?

Intercept executed several strategic financial moves, including a secured convertible notes exchange, the sale of its international business, and repurchases of secured convertible notes.

What is the current net debt situation for Intercept Pharmaceuticals?

As of September 2022, Intercept Pharmaceuticals is net debt positive for the first time since 2019.

What is the stock symbol for Intercept Pharmaceuticals?

The stock symbol for Intercept Pharmaceuticals is ICPT.