Cerence Inc. announced it repurchased approximately $27 million aggregate principal amount of its 3.00% Convertible Senior Notes Due 2025. The repurchase was executed at a cash price equal to 98.5% of their principal amount, plus accrued interest.
This strategic decision utilizes the company's cash reserves efficiently, reducing interest expense and eliminating potential dilution from refinancing the repurchased notes. Cerence plans to pay off the remaining $60.5 million of Notes upon maturity in June 2025 using cash on hand.
Additionally, the company intends to terminate its undrawn $50.0 million senior secured first-lien revolving credit facility, contingent upon the completion of the Notes repurchase. This action will result in savings on ongoing commitment fees and further optimize the balance sheet.
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