Sequenom, Inc. (NASDAQ:SQNM), a life sciences company committed to enabling healthier lives through the development of innovative products and services, announced that it has entered into separate, privately negotiated exchange agreements with certain holders of its outstanding 5.00% Convertible Senior Notes due 2017 issued on September 17, 2012 (the “Existing Notes”) pursuant to which Sequenom will exchange $85 million in aggregate principal amount of the Existing Notes for $85 million in aggregate principal amount of new 5.00% Convertible Exchange Senior Notes due 2018 (the “New Notes”). Following the closing of these transactions, $45 million in aggregate principal amount of the Existing Notes will remain outstanding with terms unchanged. The exchange is expected to close on June 9, 2015, subject to customary closing conditions.
The New Notes will accrue interest at an annual rate of 5.00%, payable semi-annually in arrears in cash on April 1 andOctober 1 of each year, beginning October 1, 2015. The New Notes will mature on January 1, 2018, unless previously repurchased or exchanged in accordance with their terms prior to such date.
The New Notes are convertible at any time prior to the third trading day immediately preceding the maturity date, at the option of the holders, into shares of the Company’s common stock (the “Common Stock”). Subject to compliance with certain conditions, the Company has the right to mandatorily convert the New Notes if the last reported sales price of the Common Stock equals or exceeds 115% of the applicable conversion price of the New Notes for at least 20 trading days during the 30 consecutive trading day period ending within five trading days immediately prior to the date on which the Company delivers a mandatory conversion notice.
The conversion rate is initially 216.0644 shares of Common Stock per $1,000 principal amount of New Notes (equivalent to an initial conversion price of approximately $4.63 per share of Common Stock), and will be subject to adjustment upon the occurrence of certain events. In addition, holders of the New Notes who convert their Notes in connection with a make-whole fundamental change (as defined in the Indenture), whose New Notes are converted in connection with a mandatory conversion or who convert their notes on a conversion date on which the last reported sales price of the Common Stock exceeds the then applicable conversion price are, under certain circumstances, entitled to an increase in the conversion rate.
The Company may not redeem the New Notes prior to the maturity date. Upon a fundamental change (as defined in the Indenture), subject to certain exceptions, the holders may require that the Company repurchase some or all of their New Notes for cash at a repurchase price equal to 100% of the principal amount of the New Notes being repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.
This press release is neither an offer to sell nor a solicitation of an offer to buy the New Notes or the Common Stock nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. (Original Source)
Shares of Sequenom closed yesterday at $3.36 . SQNM has a 1-year high of $4.80 and a 1-year low of $2.74. The stock’s 50-day moving average is $3.99 and its 200-day moving average is $3.72.
On the ratings front, Sequenom has been the subject of a number of recent research reports. In a report issued on May 8, Oppenheimer analyst Ling Wang reiterated a Buy rating on SQNM. Separately, on May 7, Wedbush’s Zarak Khurshid downgraded the stock to Hold and has a price target of $4.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ling Wang and Zarak Khurshid have a total average return of -3.0% and 6.0% respectively. Wang has a success rate of 41.7% and is ranked #3123 out of 3610 analysts, while Khurshid has a success rate of 67.4% and is ranked #1141.
Sequenom Inc is a molecular diagnostic testing and genetics analysis company which provides molecular diagnostic testing services.