STOUGHTON, Mass. - Collegium Pharmaceutical , Inc. (NASDAQ:COLL) announced today its decision to redeem all outstanding 2.625% Convertible Senior Notes due in 2026. The total principal amount of these notes is $26,350,000, and they will be redeemed on June 14, 2024. Holders of the notes will receive a cash payment equal to 100% of the principal amount, plus accrued and unpaid interest up to but not including the redemption date.
The redemption price per $1,000 principal amount of the notes is approximately $1,008.68. Collegium's right to redeem these notes was triggered when the sale price of its common stock exceeded 130% of the notes’ conversion price over a certain period, as outlined in the indenture agreement governing the notes.
On the redemption date, the redemption price will become payable upon presentation and surrender of the notes to The Bank of New York Mellon (NYSE:BK) Trust Company, N.A., which is acting as the paying agent. After the redemption date, interest on the notes will cease to accrue, and the only right remaining for the noteholders will be to receive the redemption price upon surrender of their notes.
Noteholders are entitled to convert their notes to cash until 5:00 p.m. (New York City time) on the business day before the redemption date unless the company defaults on the redemption price payment. In that case, conversions can occur until the full payment is made. The conversion rate has been adjusted to 36.7815 shares of common stock per $1,000 principal amount of notes, subject to further adjustments as specified in the indenture.
Collegium Pharmaceutical is a specialty pharmaceutical company focused on the development and commercialization of products for people with serious medical conditions.
This announcement is based on a press release statement.
InvestingPro Insights
As Collegium Pharmaceutical, Inc. (NASDAQ:COLL) prepares to redeem its outstanding convertible notes, the company's financial health and market performance become focal points for investors. According to InvestingPro, Collegium has a strong shareholder yield, which is a positive sign for investors looking for returns on their investment. This is reflected in the company's aggressive share buyback program, which is often a signal of management's confidence in the company's future prospects.
InvestingPro data further reveals that Collegium has a market capitalization of $1.24 billion, with a trailing twelve months price-to-earnings (P/E) ratio of 13.94, suggesting a more favorable valuation compared to the current P/E ratio of 26.66. Additionally, the company has demonstrated robust revenue growth of 22.17% over the last twelve months as of Q1 2023, indicating a strong business performance.
An InvestingPro Tip highlights that analysts have revised their earnings estimates upwards for the upcoming period, which may signal potential growth and profitability for the company. In fact, Collegium is anticipated to be profitable this year, with a strong return over the last year, as evidenced by a 67.39% one-year price total return. Moreover, the company is trading near its 52-week high, with the price at 96.26% of this peak, showcasing investor confidence.
For investors seeking more in-depth analysis and additional insights, there are 13 more InvestingPro Tips available for Collegium Pharmaceutical, which can be accessed at Investing.com/pro/COLL. To further enhance your investing toolkit, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of financial data and expert analysis.
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