Indivior's Stock Price Drops Following Announcement of Convertible Notes Issuance

Investing.com – Indivior Pharmaceuticals, Inc. (NASDAQ:INDV) stock dropped 8% after the company announced plans to privately issue $400 million of 2031 maturity convertible preferred notes to qualified institutional buyers.

These notes will be senior unsecured debt, pay interest semiannually, and mature on March 15, 2031. Holders of the notes will have the right to convert their notes under certain conditions, with Indivior settling conversions by paying or delivering cash and, if applicable, its common stock.

Indivior plans to use approximately $239 million of net proceeds, along with about $102 million of existing cash, to repay borrowings and terminate its term loan and revolving credit facilities. The company also intends to use up to approximately $75 million of the proceeds, at the time of pricing, to repurchase its common stock from certain noteholders through privately negotiated transactions.

The company may redeem these notes on or after March 20, 2029, provided that the last reported sale price per share exceeds 130% of the conversion price during a specified period and certain other conditions are met. If certain fundamental change events occur, noteholders can require Indivior to repurchase their notes at a cash price equal to the principal plus accrued and unpaid interest.

The company also granted initial purchasers a 30-day option to buy up to an additional $60 million of principal amount of notes. Final terms, including interest rate and initial conversion rate, will be determined at pricing.

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