Sarepta Therapeutics, Inc. ( SRPT ) shares are trading lower Thursday after the company announced it will refinance $700 million worth of 1.25% convertible notes due 2027.

What To Know: Under privately negotiated exchange agreements, Sarepta will swap about $700 million in aggregate principal amount of its existing convertible notes for approximately $602 million in new 4.875% convertible senior notes due 2030, along with up to 6.7 million shares of common stock and about $123.3 million in cash.

The new convertible notes carry an initial conversion rate of 16.6667 shares per $1,000 of principal, equating to a $60.00 per-share conversion price—a 191.5% premium relative to the last reported sale price of $20.58 per share on Aug. 20.

Sarepta also entered into a separate private placement agreement with J. Wood Capital Advisors LLC for up to 1.4 million shares of common stock.

The transactions, expected to close on or about Aug. 28, aim to extend the maturity of a substantial portion of the company's convertible notes to 2030 and improve its capital structure. After closing, approximately $450 million in aggregate principal of the existing notes will remain outstanding under the original terms.

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SRPT Price Action: At the time of writing, Sarepta shares are trading 4.96% lower at $19.57, according to data from Benzinga Pro.

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