In the most recent trading session, the value of Omeros Corporation’s (NASDAQ: OMER) shares increased significantly, rising by 20.83% to $4.06. This increase came after the business declared the conclusion of several important financial deals.
Strengthening Financial Position
Omeros said that it has successfully completed a number of calculated financial moves aimed at strengthening its balance sheet and deferring the maturity of a sizable amount of its debt until June 2028. The aforementioned transactions offer a stable funding source to facilitate the possible commercialization of narsoplimab, an inhibitor of the lectin pathway, and grant flexibility in handling the outstanding balance of the 2026 convertible notes.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
Omeros engaged into a Credit and Guaranty Agreement with funds managed by Highbridge Capital Management, LLC and Athyrium Capital Management, LP in order to accomplish these goals. A $92.1 million senior secured term loan facility is established by the arrangement, including a $25.0 million delayed draw term loan and a $67.1 million fully funded initial term loan.
Utilization Of Proceeds And Debt Management
The proceeds from the initial term loan, supplemented by $21.2 million in cash on hand (subject to certain post-closing adjustments), were utilized to repurchase $118.1 million of Omeros’ 5.25% Convertible Senior Notes due February 15, 2026.
This repurchase represented 55 percent of the outstanding 2026 Notes held by Athyrium and Highbridge. The repurchase was executed at a blended price of 74.75 percent of par value, resulting in a total debt extinguishment of $51 million.
Importantly, Omeros retains all potential future value of the capped call purchased in connection with the issuance of the 2026 Convertible Notes, covering all shares underlying the original notes. Neither the initial nor the delayed draw term loans include any equity consideration for the lenders, thereby avoiding shareholder dilution.
Future Financing And Commercialization Prospects
The $25.0 million delayed draw term loan can be fully drawn by June 3, 2025, contingent upon U.S. Food and Drug Administration approval of narsoplimab for the treatment of hematopoietic stem cell transplant-associated thrombotic microangiopathy (TA-TMA).
If borrowed, the proceeds from this loan will be allocated to the commercialization of narsoplimab and to cover transaction costs associated with the delayed draw term loan. While the initial term loan has no original issue discount, the delayed draw term loan would be issued with a 3.00% original issue discount.
