- Insmed (INSM, Financial) will redeem all outstanding $569.5 million of 0.75% Convertible Senior Notes Due 2028.
- The redemption is scheduled for June 6, 2025, offering noteholders a conversion option until June 4, 2025.
- Potential issuance of up to 17,523,336 shares if all notes are converted to common stock.
Insmed Incorporated (INSM) has announced a strategic financial move to redeem all $569.5 million of its remaining 0.75% Convertible Senior Notes Due 2028. The redemption is set for June 6, 2025, with a redemption price of approximately $1,000.10 per $1,000 principal amount, inclusive of accrued and unpaid interest.
Noteholders have the option to convert their notes into common stock at a conversion rate of 30.7692 shares per $1,000 principal amount, translating to a conversion price of $32.50 per share. This conversion option remains available until June 4, 2025. If every note is converted, Insmed could issue up to 17,523,336 shares of common stock.
This redemption indicates a strong financial position for Insmed, as the company aims to eliminate its debt obligations while accepting potential dilution. The current stock price of $70.80, significantly exceeding the conversion price, provides a strong incentive for noteholders to convert their notes into equity rather than opt for cash redemption. This maneuver reflects Insmed’s confidence in leveraging its favorable stock market condition to optimize its capital structure and reduce future debt liabilities.
