Benzinga | Sep 24, 2020 05:38AM EDT

Lexicon Pharmaceuticals Announced Agreements to Exchange Convertible Notes, Reduce Outstanding Indebtedness

Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) announced Wednesday that it has entered into separate, privately-negotiated exchange agreements with certain holders of its 5.25% Convertible Senior Notes due 2021 under which such holders have agreed to exchange an aggregate principal amount of $62.55 million of Notes in exchange for aggregate consideration consisting of $41.03 million in cash (including $1.07 million of accrued interest) and 8,746,117 shares of Lexicon's common stock, par value $0.001 per share.

The transactions are expected to close by September 28, 2020, subject to customary closing conditions. Immediately following the closings, $24.95 million in aggregate principal amount of the Notes will remain outstanding.

The completion of the transactions will reduce Lexicon's remaining interest expense through 2021 on the exchanged Notes by approximately $3.9 million. Once completed, and together with other debt reductions, including the repayment of Lexicon's secured loan concurrent with the closing of its sale of XERMELO(r) (telotristat ethyl) and related assets to TerSera Therapeutics, LLC, Lexicon will have reduced the principal amount of its outstanding debt by approximately 90% since June 30, 2020, better aligning with its strategic focus on its LX9211 neuropathic pain program and other research and development assets.