8-KOther EventsExhibits & Filings

DEXCOM INC 8-K Report, Corporate Update (Jun 29, 2020)

Filed June 29, 2020For Securities:DXCM

Summary

This 8-K filing from DexCom, Inc. (DXCM) on June 29, 2020, announces a redemption of its outstanding 0.75% Senior Convertible Notes due 2022. The company will redeem these notes for cash on July 31, 2020, at 100% of the principal amount plus accrued interest, unless converted prior to that date. This action indicates DexCom's intention to clear its outstanding convertible debt. Investors should note the redemption date and the terms of the redemption, as it affects holders of these specific notes. Crucially, noteholders have the option to convert their notes into DexCom common stock at a conversion rate of 10.0918 shares per $1,000 principal amount before the redemption date. DexCom plans to settle any such conversions by issuing shares of its common stock. This implies that DexCom anticipates significant conversions, potentially leading to an increase in its outstanding shares, which could impact earnings per share. Investors should monitor the conversion activity leading up to the redemption date.

Key Highlights

  • 1DexCom is redeeming its 0.75% Senior Convertible Notes due 2022.
  • 2The redemption date is set for July 31, 2020.
  • 3Redemption price is 100% of the principal amount plus accrued interest.
  • 4Holders can convert notes to DexCom common stock prior to redemption.
  • 5The conversion rate is 10.0918 shares per $1,000 principal amount.
  • 6DexCom intends to satisfy conversion obligations by issuing shares of its common stock.
  • 7This action aims to retire outstanding convertible debt.

Frequently Asked Questions

DexCom is issuing a notice to redeem these notes on July 31, 2020. This means the company will pay back the principal amount plus any accrued interest to the noteholders on that date, unless the notes are converted before then.

Holders have the choice to either accept the cash redemption on July 31, 2020, or convert their notes into DexCom common stock at a rate of 10.0918 shares for every $1,000 principal amount of notes. This conversion must be done before the redemption date.

DexCom has stated its intention to satisfy any conversion obligations by issuing shares of its common stock. This means that instead of paying cash for converted notes, the company will issue new shares to the converting noteholders.

If a significant number of noteholders choose to convert their notes into shares rather than accepting cash, it could lead to an increase in the number of DexCom's outstanding common shares. This potential increase in share count could dilute existing shareholders' ownership and affect earnings per share (EPS) calculations.