Sarepta Therapeutics (NASDAQ:SRPT) has completed a strategic refinancing of approximately $700 million of its convertible debt, extending maturity dates and strengthening its financial position to support ongoing rare disease drug development programs. The precision genetic medicine company announced separate exchange agreements with select noteholders to restructure a significant portion of its 1.25% convertible senior notes due 2027.
Transaction Structure and Terms
Under the privately negotiated exchange agreements, Sarepta will exchange approximately $700.0 million in aggregate principal amount of existing convertible notes for $602.0 million in new 4.875% convertible senior notes due 2030. The transaction also includes up to approximately 6.7 million shares of common stock and approximately $123.3 million in cash.
The new convertible notes carry an initial conversion rate of 16.6667 shares per $1,000 principal amount, equivalent to a conversion price of approximately $60.00 per share. This represents a 191.5% conversion premium based on the company's closing stock price of $20.58 per share on August 20, 2025.
Additionally, Sarepta entered into a private placement agreement with J. Wood Capital Advisors LLC for up to approximately 1.4 million additional shares of common stock. The transactions are expected to close on or about August 28, 2025, subject to customary closing conditions.
Strategic Financial Benefits
"This exchange marks important progress in our long-term financial strategy," said Doug Ingram, chief executive officer of Sarepta. "By extending the maturity of a meaningful portion of our convertible notes to 2030, we have completed a shareholder-friendly transaction that significantly enhances our balance sheet flexibility and strengthens our financial position."
The refinancing extends the debt maturity by three years, providing Sarepta with additional time to execute its development programs and generate cash flows from its existing portfolio. Following the exchange, approximately $450.0 million in aggregate principal amount of the original convertible notes will remain outstanding with terms unchanged.
Pipeline Focus and Future Outlook
Ingram emphasized that the improved financial position allows the company to concentrate on its core business and upcoming clinical readouts. "With our go-forward cash flows and liquidity, we believe we are well positioned to fully fund our pipeline and meet our near-term obligations," he stated. "This allows us to focus on our base business and the upcoming readouts from our pipeline, including our siRNA programs, as we continue to pursue our mission to transform the lives of patients with rare diseases."
Sarepta maintains leadership positions in Duchenne muscular dystrophy and is building a portfolio across muscle, central nervous system, and cardiac diseases. The company's siRNA programs represent a key component of its development pipeline, with readouts anticipated in the near term.
The refinancing was structured as private transactions pursuant to exemptions from registration under the Securities Act of 1933. J. Wood Capital Advisors LLC served as Sarepta's financial advisor for the exchange transactions.
