Shockwave Medical, Inc. has recently undergone a significant corporate event, with the company's merger with Johnson & Johnson and the subsequent delisting from the Nasdaq Global Select Market. As a result of these changes, various financial metrics have been impacted, and the company has issued notices to its stakeholders regarding the implications of these developments.
One notable change is the conversion of Shockwave Medical's 1.00% convertible senior notes due 2028 into a different form of property. As per the supplemental indenture executed by the company and the Trustee, the right to convert each $1,000 principal amount of Notes has been altered to allow conversion solely into a number of units of Reference Property, with each unit being equivalent to $335.00 in cash, without interest.
Furthermore, in connection with the Make-Whole Fundamental Change resulting from the merger, holders of the Notes have the right to receive cash equal to $1,293.23 per $1,000 principal amount of Notes based on the adjusted Conversion Rate, which now stands at 3.8604 shares of Common Stock per $1,000 principal amount of Notes.
Additionally, as a result of the Fundamental Change, each holder of the Notes has the right to require the company to purchase all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes, plus accrued and unpaid interest, amounting to approximately $1,003.78 per $1,000 principal amount of Notes.
These changes reflect the significant impact of the corporate events on Shockwave Medical's financial instruments and the rights of its stakeholders. As the company moves forward under its new ownership, stakeholders will need to carefully consider their options in light of these altered financial metrics. The market has reacted to these announcements by moving the company's shares 0.0% to a price of $334.75. If you want to know more, read the company's complete 8-K report here.
