Wright Medical (NSDQ:WMGI) said yesterday that it inked a refinancing deal looking to exchange $112.1 million in existing 2% convertible senior notes due 2020 for $120.2 million in newly issued 1.625% senior notes due 2023.
The Amsterdam-based company said that for each $1,000 principal amount of notes submitted for exchange, it will deliver $1,072.40 principal amount of 2023 notes, with no separate cash payment for rounded amounts or interest, according to an SEC filing.
Wright Medical said that it expects the exchange to close on February 7, and that it will receive no cash proceeds from the exchange of the notes, according to an SEC filing.
SVB Leerink analyst Richard Newitter called the move an incremental positive in a letter to investors.
Newitter said that with the move, the company will be exchanging the majority of its 2020 notes for 2023 converts with a lower interest and higher effective conversion price, and added that the transaction was “structured as a privately marketed convertible exchange offer to minimize stock volatility.”
Shares in Wright Medical have fallen approximately 1.3% today, at $29.44 as of 1:50 p.m. EST.
Last December, the U.S. Court of Appeals for the Federal Circuit shot down an appeal by Wright Medical seeking to obtain legal fees related to a patent infringement case against Spineology which was decided in Wright’s favor this summer.