Collegium Pharmaceutical, Inc. (NASDAQ: COLL) has announced the redemption of its outstanding 2.625% convertible senior notes due 2026, totaling $26,350,000 in aggregate principal amount. The redemption price, payable in cash, will be equal to 100% of the principal amount of each note called for redemption, plus accrued and unpaid interest on each note to the redemption date. The redemption price for each $1,000 principal amount of notes is approximately $1,008.68.
The company's redemption right arose due to the last reported sale price of the company’s common stock exceeding 130% of the conversion price of the notes during the required period.
The redemption price will be made upon presentation and surrender of the notes to the Bank of New York Mellon Trust Company, N.A. (BNYMTC), in its capacity as the paying agent under the indenture. Holders of the notes may surrender them for conversion until immediately prior to 5:00 p.m. (New York City time) on the business day immediately before the redemption date.
The "make-whole fundamental change" under the indenture has led to an increase in the conversion rate to 36.7815 shares of common stock per $1,000 principal amount of notes as of the date of the press release.
This press release emphasizes that the redemption is neither an offer to sell nor a solicitation of an offer to buy the notes or any other securities in any jurisdiction in which such offer, solicitation, or sale is unlawful.
Collegium Pharmaceutical, Inc. is a leading, diversified specialty pharmaceutical company committed to improving the lives of people living with serious medical conditions, with headquarters in Stoughton, Massachusetts. The market has reacted to these announcements by moving the company's shares -4.6% to a price of $36.23. If you want to know more, read the company's complete 8-K report here.
