Endologix inks debt refinancing deal, looks to raise $52m

Endologix (NSDQ:ELGX) said today that it is looking to raise $52 million in a new offering of its common shares and that it inked debt exchange agreements with certain holders of its senior convertible notes.
In its private placement deal, the Irvine, Calif.-based company said it plans to float approximately 7.9 million new shares of its common stock at a price of $6.61 per share.
Endologix said 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 entered into an exchange agreement with two holders of its 3.25% senior convertible notes due 2020.
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 added that Deerfield has also agreed to amend its existing facility agreement and credit agreement it previously inked.
“Today’s announcement represents another step forward for Endologix. The transactions announced today will allow us to focus our efforts on continued execution while investing in bringing evidence-driven products to market. Our supportive partners worked diligently with us to structure these transactions, and I am proud of our team’s persistence in getting this ...

Source: Mass Device - April 2, 2019 Category: Medical Devices Authors: Fink Densford Tags: Business/Financial News Wall Street Beat Endologix Source Type: news