RTTNews | Aug 11, 2021 10:23AM EDT

10:22 Wednesday, August 11, 2021 (RTTNews.com) - Shares of Intercept Pharmaceuticals Inc. (ICPT) slipped over 8% on Wednesday morning after the company announced convertible notes exchange, new issuance and stock repurchase.

ICPT is currently trading at $15.35, down $1.40 or 8.36%, on the Nasdaq, on a volume of 5.2 million shares, far above the three-month average volume of 693 thousand shares. Intercept has traded between $13.88 and $54.26 in the 52-week period. The stock has lost nearly 70% in that time frame.

The company said it has agreed with certain of the holders of its existing 3.25% Convertible Senior Notes due 2023 and 2.00% Convertible Senior Notes due 2026 to exchange $306.5 million principal amount of 2023 Notes and $114.7 million principal amount of 2026 notes for a newly issued series of Convertible Senior Secured Notes due 2026.

Intercept will also sell about $117.6 million new Notes for cash.

Intercept estimates that cash proceeds will be about $107.3 million and to use the proceeds for general corporate purposes.

Intercept expects to use $75.7 million of cash on hand to repurchase shares of its common stock in privately negotiated transactions at a price per share of $16.75, equal to the closing price of the Company's common stock on August 10, 2021.

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