Quotient Limited Announces receipt of Note Holders Consents to Indenture Amendments That Extend Maturity, Defer Principal Payments on 12% Senior Secured Notes
Notes holders unanimously consent to amendments
- Company’s near-term cash obligations reduced by approximately $60 million
Transaction extends liquidity runway through commercial launch and provides resources for further MosaiQ investment
JERSEY, Channel Islands, Oct. 14, 2021 (GLOBE NEWSWIRE) -- Quotient Limited (NASDAQ:QTNT), a commercial-stage diagnostics company (the Company), today announced it has received unanimous consents from the holders of its 12% Senior Secured Notes (the Notes) to certain amendments to the Indenture governing the Notes (the Indenture Amendments).
The Indenture Amendments include an 18-month extension of the final maturity of the Notes to October 2025 and a revision of the Notes' principal amortization schedule (which previously required semi-annual payments of principal beginning April 2021) to commence April 2023. The revised amortization schedule will defer approximately $60 million of principal payments over the next two years. The interest rate on the Notes and the financial and other covenants in the Indenture remain unchanged.
In consideration of the Note holders' consents to the amendments, the Company agreed to issue them an aggregate of 932,772 of the Company's ordinary shares and 5-year warrants to purchase an aggregate of 1,844,020 of the Company's ordinary shares for $4 per share. The Company believes that this combination of shares and warrants has an aggregate value of approximately 3.25% of the outstanding principal amount of the Notes. The supplemental indenture reflecting the Indenture Amendments will not become operative until the Indenture Trustee receives certain materials from Depositary Trust Company participants confirming all Note holders’ instructions. The Company expects that requirement will be satisfied later today.
“I am very pleased to have reached an agreement with our existing Note holders. This agreement improves our liquidity and provides us with additional freedom to execute on the commercial launch of MosaiQ and further advance the MosaiQ pipeline.” said Manuel O. Méndez, Chief Executive Officer of Quotient. “The continued support from our existing stakeholders since my arrival has been tremendous and demonstrates their confidence in the MosaiQ solution and our Company as a whole.”