Opko Health tumbles on convertible debt deal

Hanall Biopharma

04/01/2024 13:52

** Okpo Health's  OPK.O  shares down 16% at $1.26 premarket
as biopharma co looks to raise capital
    ** Co late Weds said offering privately $200 mln 5-yr
convertible bonds (CBs)
    ** It plans to use up to $50 mln of net offering proceeds to
buy back stock from bond purchasers, remainder to repurchase
~$144.6 mln principal 4.50% CBs due Feb 2025
    ** Also, Opko management including CEO Phillip Frost and
Jane Hsiao, co's chief technical officer, and others indicated
to buy $70 mln of 2029 CBs through concurrent offering of
“affiliate notes”
    ** Opko has $1.2 bln market cap, per LSEG data
    ** OPK shares, which fell 4.5% on Weds, have lost nearly 30%
over the last six months

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))