Summary
Regeneron Pharmaceuticals, Inc. (REGN) has filed an 8-K report detailing a significant amendment to a warrant agreement with Credit Suisse Capital LLC. This Fourth Amendment, executed on November 15, 2015, dramatically reduces the number of outstanding warrants held by Credit Suisse, by up to 92% (approximately 476,376 warrants). This reduction is tied to Credit Suisse closing out its hedging positions related to these warrants between November 16, 2015, and February 9, 2016. Regeneron will pay an aggregate amount not exceeding $200.0 million for this warrant reduction. The company has the flexibility to satisfy these payments either in cash or by issuing shares of its common stock, subject to a cap of 250,000 shares that can be delivered in total for these settlements.
Key Highlights
- 1Regeneron entered into a Fourth Amendment to its Warrant Agreement with Credit Suisse Capital LLC on November 15, 2015.
- 2The amendment allows for the reduction of up to 476,376 warrants, representing approximately 92% of the remaining warrants held by Credit Suisse.
- 3Regeneron will pay an aggregate amount not exceeding $200.0 million to Credit Suisse for the warrant reduction.
- 4The reduction is contingent upon Credit Suisse closing out its hedging positions within a specified period (November 16, 2015, to February 9, 2016).
- 5Regeneron has the discretion to settle these payments in cash or by issuing shares of its common stock.
- 6There is a cap of 250,000 shares that Regeneron can deliver in total for these settlements, with provisions for shortfalls if stock settlement exceeds this cap.