Exact Sciences enters exchange agreement for two convertibles

By Mary-Katherine Stinson

Lexington, Ky., Feb. 23 – Exact Sciences Corp. entered a privately negotiated exchange and purchase agreement on Feb. 23 with a holder of certain of the company’s 0.375% convertible senior notes due 2027 and 0.375% convertible senior notes due 2028, according to a press release.

According to the agreement, the company has agreed to issue to the holder $500 million total principal amount of a new series of 2% convertible senior notes due March 1, 2030 in exchange for $183,678,000 aggregate principal amount of the holder’s existing 2027 notes, $200,958,000 total principal amount of the holder’s existing 2028 notes and approximately $138 million in cash.

The new notes are contingently convertible until Sept. 1, 2029.

The conversion rate for the 2030 notes is initially 12.3724 shares per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $80.825 per share of common stock representing a conversion premium of 25%.

XMS Capital Partners LLC is the sole placement agent.

Exact Sciences is a Madison, Wis.-based molecular diagnostics company focused on the early detection of colorectal cancer.

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