Teligent Announces Completion of Series D Convertible Note Exchange
Teligent, Inc. (NASDAQ: TLGT) announced the issuance of approximately $27.5 million in Zero Coupon Convertible Senior Notes due 2023 in exchange for about $57.9 million of its existing 4.75% Convertible Senior Notes, reflecting a 52.5% discount. The company also swapped a smaller amount of Series B Convertible Notes under similar terms, showcasing a 31% discount. The New 2023 Notes are convertible at $1.50 per share and mature in May 2023. This transaction aims to boost liquidity and reduce debt, with support from Series A bondholders.
- Issuance of $27.5 million in Zero Coupon Convertible Senior Notes enhances liquidity.
- Transaction supports de-leveraging of the balance sheet.
- The 52.5% discount on Series A Convertible Notes indicates potential underlying financial distress.
- The maturing of New 2023 Notes in May 2023 poses imminent debt repayment pressure.
BUENA, N.J., Sept. 23, 2020 (GLOBE NEWSWIRE) -- Teligent, Inc. (NASDAQ: TLGT) (“Teligent” or the “Company”), a New Jersey-based specialty generic pharmaceutical company, announced the closing of the issuance of approximately
The New 2023 Notes will not bear interest and will mature in May 2023.
The New 2023 Notes are convertible at the option of the holder at any time prior to maturity at an initial conversion price of
Tim Sawyer, President & Chief Executive Officer of Teligent Inc. stated “This transaction was the result of close collaboration with our Series A bondholders. The terms reflect their support of the Company’s effort to improve short-term liquidity and enables us to take another step towards de-leveraging our balance sheet.”
Jefferies LLC served as exclusive financial advisor and K&L Gates LLP served as legal counsel to Teligent.
The New 2023 Notes and any shares of common stock issuable upon conversion of the New 2023 Notes (the “Conversion Shares”) have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other jurisdiction’s securities laws, and the New 2023 Notes and the Conversion Shares may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. Teligent does not intend to file a registration statement for the resale of the New 2023 Notes or any Conversion Shares.
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor does it constitute an offer, solicitation or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
This press release includes “forward-looking statements” that are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are statements that could be deemed forward-looking. These statements are based on current expectations, estimates, forecasts and projections about the Company’s business and the industry in which the Company operates and the beliefs and assumptions of the Company’s management. Forward-looking statements can be identified by the use of words such as “will,” “may,” “could,” “should,” “would,” “believe,” “depends,” “expect,” “goal,” “anticipate,” “forecast,” “project,” “future,” “intend,” “plan,” “estimate,” “target,” “indicate,” “outlook,” and similar expressions of future intent or the negative of such terms. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, these forward-looking statements are based on management’s current beliefs, expectations and assumptions and are subject to risks and uncertainties. These statements are based on the Company’s current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under the caption “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other periodic reports the Company files with the Securities and Exchange Commission. Additionally, many of these risks and uncertainties are currently amplified by and will continue to be amplified by, or in the future may be amplified by, the COVID-19 outbreak and the effects thereof on the Company’s future performance and results of operations. It is not possible to predict or identify all such risks. There may be additional risks that the Company considers immaterial or which are unknown. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements included in this press release speak only as of the date hereof and, subject to any continuing obligations under applicable law or any relevant stock exchange rules, we expressly disclaim any obligation to disseminate, after the date of this document, any updates or revisions to any such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based.
Philip K. Yachmetz
Teligent, Inc.
(856) 776-4632
www.teligent.com
FAQ
What is the significance of Teligent's $27.5 million note issuance?
What discounts were applied in the recent Teligent notes exchange?
When do the New 2023 Notes mature?
What is the conversion price for Teligent's New 2023 Notes?
How does the recent transaction impact Teligent's balance sheet?
