BUENA, N.J., Jan. 28, 2021 /PRNewswire/ — Teligent, Inc. (Nasdaq: TLGT), (“Teligent” or the “Firm”), a New Jersey-primarily based specialty generic pharmaceutical corporation, these days introduced a series of strategic steps in partnership with its senior creditors and its Sequence C noteholders to recapitalize and boost the Firm’s money flexibility. Via these actions and with assistance from its senior creditors and Sequence C noteholders, the Organization is strengthening its harmony sheet when also working to raise added capital and situation itself for accomplishment, together with enabling it to complete the perform needed to remediate and tackle the difficulties raised by the U.S. Meals and Drug Administration (Fda) in the Warning Letter issued to the Corporation on November 26, 2019.
- In support of the Organization, Teligent’s Sequence C noteholders (largely Silverback Asset Management, LLC [“Silverback”] and Nantahala Capital Management, LLC [“Nantahala”]) and its senior secured lenders have converted about $77 million of complete debt into equity at sixty per cent (60%) and 30 p.c (30%) rates, respectively, to the approximate value per share of $1.11, the volume weighted ordinary value (“VWAP”) of the common stock for a trailing five working day trading period ending on January 26, 2021.
- Teligent’s Next Lien Credit score Arrangement has been amended to provide $4.6 million in incremental funding by way of delayed draw term loans to help the Firm’s ongoing liquidity.
- Teligent has also entered into an at-the-marketplace (ATM) issuance sales agreement with B. Riley Securities, Inc. pursuant to which the Business could, from time to time, in its discretion, present and offer shares of its typical inventory with a complete value of close to $22.62 million. Teligent expects to use proceeds from this giving for general company uses.
“Today’s announcement marks a pivotal move in our journey towards securing a potent money potential for Teligent, and we are grateful for the ongoing help of our creditors and noteholders as we work to accomplish this intention,” said Tim Sawyer, Teligent’s President and Chief Govt Officer. “More than the earlier 12 months, we have taken major strides to minimize our personal debt load even though addressing marketplace developments and operational hurdles that have challenged our business enterprise. The collection of money actions we are announcing nowadays is a even further collaborative phase that will permit us to deal with our current fiscal standing and appraise additional strategic paths that will ideal placement Teligent for the foreseeable future. We consider that through the credit card debt-for-fairness exchange, incremental bank loan availability and the ATM fairness featuring, we will reach a financial framework that will empower us to keep on delivering high quality items for our prospects and clients and mature our relationships with all stakeholders.”
Debt-for-Equity Exchange and More Incremental Financing
As of January 27, the Collection C noteholders have exchanged 100% of their Collection C notes (collectively $53 million) into common stock at a high quality of sixty per cent (60%) to the VWAP of $1.11, and Teligent’s senior secured financial institution has converted its payment-in-kind (PIK) desire of $24.5 million into convertible chosen stock at a thirty percent (30%) high quality to the VWAP of $1.11. In full, this signifies the conversion of close to $77 million of debt into equity, demonstrating noteholders’ and lenders’ aid of Teligent’s route forward and perception in the Company’s upcoming. After giving outcome to this credit card debt-for-equity exchange, Teligent’s excellent funded credit card debt has been diminished by close to $118 million considering that June 30, 2020, from $223 million to approximately $105 million.
To assistance the Corporation as it has been finalizing the conversion of debt to fairness and commencement of the ATM fairness featuring, the Company’s senior secured lender, with participation from Nantahala and Silverback, has amended the Company’s Second Lien Credit rating Arrangement to give for $4.6 million in supplemental financing in the sort of delayed attract time period financial loans. The 2nd Lien Credit Agreement has also been amended to increase PIK desire for a a single-12 months interval and each the Company’s Initial Lien and 2nd Lien Credit history Agreements have been amended to deliver a monetary covenant holiday by March 31, 2022. The further personal loan capacity under the Second Lien Credit rating Arrangement is obtainable in several attracts in the celebration the Company’s liquidity dips below $4 million.
At-The-Marketplace Fairness Offering
The Company has entered into an at current market issuance sales arrangement with B. Riley pursuant to which the Corporation may well present and provide up to $22.62 million of common stock by way of or to B. Riley. Teligent intends to use the web proceeds of the at-the-industry equity presenting for normal corporate uses, including resolution of the issues lifted in the November 2019 warning letter from the Food and drug administration, protecting readiness for an Food and drug administration pre-acceptance inspection for its newly constructed injectables facility and increasing its presenting of CDMO companies to its customers.
The frequent stock will be presented underneath the Company’s present powerful shelf registration assertion (such as a prospectus) on Kind S-3 (File No. 333-224188) filed with the U.S. Securities and Exchange Fee (SEC). A prospectus dietary supplement relevant to the providing has been submitted with the SEC. Any offer you, solicitation or sale will be made only by suggests of the prospectus health supplement and the accompanying prospectus. Recent and likely traders need to read the prospectus in the registration assertion and the prospectus dietary supplement relating to the at-the-industry giving and other files the Enterprise has submitted with the SEC for extra finish info about Teligent and the at-the-marketplace featuring application.
A duplicate of the prospectus dietary supplement and accompanying prospectus relating to these securities could be obtained by speaking to B. Riley Securities, Inc., 299 Park Avenue, 21st Floor, New York, New York 10171, by cellphone at (703) 312-9580 or by emailing [email protected]
You should see Kind S-3 (File No. 333-224188) and the linked prospectus nutritional supplement submitted these days with the SEC for info on the offering of shares. In advance of building an financial investment, possible traders should really teach themselves on the prospectus supplement and the accompanying prospectus. For more entire info about the Company and the “at-the-market place” equity giving plan, remember to pay a visit to SEC’s web site at www.sec.gov.
This push release does not represent an supply to offer or a solicitation of an supply to obtain, nor may perhaps there be any sale of Teligent’s typical inventory in any condition or jurisdiction in which such an give, solicitation or sale would be unlawful prior to registration or qualification less than the securities law of any point out or jurisdiction.
About Teligent, Inc.
Teligent is a specialty generic pharmaceutical firm. Our mission is to be a major participant in the specialty generic prescription drug marketplace. Learn a lot more on our internet site www.teligent.com.
Ahead-Wanting Statements and Info
This push release involves “forward-wanting statements” that are intended to qualify for the risk-free harbors from liability presented by Portion 27A of the Securities Act of 1933, as amended, and Area 21E of the Securities Trade Act of 1934, as amended. All statements other than statements of historic details are statements that could be considered forward-wanting. These statements are based on recent anticipations, estimates, forecasts and projections about the Firm’s small business and the business in which the Firm operates and the beliefs and assumptions of the Company’s administration. Forward-hunting statements can be identified by the use of phrases these kinds of as “will,” “may possibly,” “could,” “must,” “would,” “feel,” “relies upon,” “assume,” “objective,” “foresee,” “forecast,” “project,” “long term,” “intend,” “prepare,” “estimate,” “focus on,” “show,” “outlook,” and identical expressions of long run intent or the adverse of this sort of terms. Forward-on the lookout statements are neither historic points nor assurances of long run effectiveness. Rather, these forward-on the lookout statements are centered on management’s present-day beliefs, anticipations and assumptions and are issue to risks and uncertainties. These statements are dependent on the Company’s recent beliefs or anticipations and are inherently topic to numerous threats and uncertainties, such as these established forth beneath the caption “Threat Components” in the prospectus dietary supplement relating to the ATM providing and the Firm’s most modern Yearly Report on Form 10-K, Quarterly Reports on Variety 10-Q and other periodic experiences the Corporation data files with the Securities and Trade Commission. In addition, many of these risks and uncertainties are presently amplified by and will carry on to be amplified by, or in the foreseeable future may perhaps be amplified by, the COVID-19 outbreak and the outcomes thereof on the Firm’s future performance and outcomes of operations. It is not attainable to forecast or determine all such threats. There may be further hazards that the Enterprise considers immaterial or which are not known. You need to not rely on ahead-hunting statements as predictions of future events. The forward-wanting statements bundled in this press launch discuss only as of the date hereof and, issue to any continuing obligations below applicable law or any suitable inventory trade regulations, we expressly disclaim any obligation to disseminate, immediately after the date of this doc, any updates or revisions to any this sort of ahead-hunting statements to replicate any adjust in expectations or gatherings, circumstances or situations on which any this kind of statements are dependent.
Rachel Chesley / Sarah Rosselet
Source Teligent, Inc.