Update: Progenity Reduces Debt by $20.2 Million Through Private Exchange of 7.25% Notes Due 2025; Shares Rise

MT Newswires ·  {{timeTz}}

02:31 PM EDT, 10/26/2021 (MT Newswires) -- (Updates with share price movement in the last paragraph.)

Progenity (PROG) on said Tuesday it entered into privately negotiated agreements with certain non-affiliated holders of its 7.25% convertible senior notes due 2025 to exchange $20.2 million of notes for about 8.5 million common shares.

After the closing of the exchange transactions expected by Oct. 26, about $137.1 million of notes will remain outstanding with terms unchanged, of which $103.5 million is held by affiliated holder Athyrium Capital Management.

Progenity said it will not receive any cash proceeds from the exchange transactions.

The company also agreed to issue about 427,804 common shares to certain investors in consideration for a waiver of certain contractual lock-up provisions but will not receive any cash proceeds.

Progenity's shares were up 21% in afternoon trading.

Price: 4.09, Change: +0.71, Percent Change: +20.92

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