Endologix (NSDQ:ELGX) has closed a $52.2 million offering and debt exchange agreements with certain holders of its senior convertible notes for approximately $73.4 million, according to an SEC filing.
In its offering deal, announced earlier this week, the Irvine, Calif.-based company said it floated approximately 7.9 million new shares of its common stock at a price of $6.61 per share, receiving gross proceeds of approximately $52.2 million.
Endologix said that it expects to collect approximately $49 million after payment of fees and expenses and that the money will be used to support working capital and general corporate purposes.
The company said that it also closed its exchange agreement with two holders of its 3.25% senior convertible notes due 2020, according to an SEC filing.
In the deal, the investors agreed to exchange an aggregate of approximately $73 million of 3.25% notes plus accrued interest for approximately $67 million of 5% convertible senior notes due 2024 at a rate of $900 principal amount of 5% notes for every $1000 principal amount of 3.25% notes.
Endologix said that it has also issued the warrants and first out waterfall notes contemplated by the Deerfield Agreements, through which Deerfield agreed to amend its existing facility agreement and credit agreement that were previously inked.
Last month, Endologix said that its board of directors set the ratio for its upcoming reverse stock split at 1-for-10.