Omeros Restructures $80.5M In Debt With New Notes And Stock Conversion Agreements

Omeros

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(RTTNews) - Omeros Corporation (OMER) Monday announced that it has entered into agreements with select investors to restructure a portion of its outstanding debt.

The company is exchanging $70.5 million in 5.25% Convertible Senior Notes due 2026 for newly issued 9.50% Convertible Senior Notes maturing in 2029. These new notes offer a 35% premium conversion rate and aim to extend the maturity of a significant portion of Omeros' debt. The exchange is expected to close on or around May 14, 2025.

In a separate move, Omeros has signed a conversion agreement with an investor to convert $10 million of its 2026 notes into common stock, a process expected to conclude by September 15, 2025. Following both transactions, only $17.4 million of the original 2026 notes will remain, avoiding a $20 million term loan prepayment previously due in November 2025. As a result, the company's outstanding debt will decrease by $10 million, and near-term repayment obligations will drop from $117.9 million to about $17.4 million.

New Convertible Notes Overview: The new 2029 Convertible Notes are senior, unsecured obligations carrying a 9.50% annual interest rate, payable semi-annually starting December 15, 2025. These notes are convertible into cash, shares, or a combination thereof, with a conversion price based on a 35% premium above the stock's VWAP on May 12, 2025, or $6.18—whichever is higher. Investors converting after six months will receive an interest make-whole payment. The company may redeem the notes starting June 20, 2027, under specified conditions.

OMER is currently trading at $4.41 or 28.6408% lower on the Nasdaq Global Market.