Sarepta Extends $700 Million Convertible Debt to 2030, Shares Slip

Sarepta Therapeutics said it has reached privately negotiated agreements to exchange about $700 million of its 1.25% convertible senior notes due 2027 for roughly $602 million of new 4.875% notes maturing in 2030, up to 6.7 million common shares and about $123.3 million in cash. The transaction, expected to close on or around 28 August, will leave approximately $450 million of the original 2027 notes outstanding. Chief Executive Officer Doug Ingram said extending the maturity profile strengthens the balance sheet and gives the company greater flexibility to fund its pipeline of genetic-medicine programs. In early trading following the announcement, Sarepta shares fell about 5% as investors digested the dilution and higher coupon on the new securities.