Xtant Medical (XTNT) Stock Rockets On Debt Restructuring

Xtant Medical XTNT Stock News

Xtant Medical Holdings Inc (NYSEAMERICAN: XTNT) stock is flying in the market this morning, trading on gains of well over 100%. The gains come after the company announced that it has completed a previously announced debt restructuring transaction. Here’s what’s going on:

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XTNT Stock Soars On Debt Restructuring Transaction

In the press release, Xtant Medical said that the restructuring was designed to improve the company’s capital structure by reducing outstanding debt. As a result of this reduction of debt, the company expects that it will be able to access capital markets for investments in its growth initiatives. Moreover, XTNT believes that the closing of the transaction will make it possible to regain compliance with NYSE American’s continued listing standards.

XTNT issued about 57.8 million shares of common stock as part of the transaction. These shares were issued in exchange for about $40.8 million of the aggregate outstanding principal amount of loans outstanding under a credit facility.

The shares also covered about $21.1 million of the outstanding amount of PIK interest, plus all other accrued and unpaid interest on the echanging loans outstanding as of the closing date. Shares were exchanged at a closing price of $1.07 per share (a strong premium to yesterday’s close).

As a result of the transaction, OrbiMed Royalty Opportunities II, and ROS Acquisition Offshore, own about 94.5% of the company’s outstanding common shares. Remaining shareholders own about 5.5% of the company’s outstanding common stock.

In a statement, Sean Browne, President and CEO at XTNT, had the following to offer:

We are pleased to have completed this debt restructuring transaction, which significantly reduced Xtant’s total indebtedness to less than $16 million under our credit facility, lowered our cost of debt to more serviceable levels, and will allow us to focus on further improving the Company’s operating model and growth profile.

This News Is Huge

The news released by Xtant Medical is overwhelmingly positive. First and foremost, the closing of the transaction happened at a strong premium to the trading price of the stock. Moreover, it created financial stability for the company.

There’s also a strong argument brewing that since Orbimed Realty and ROS Acquisition now own 94.5% of the company, a full acquisition, with the purchase of the remaining 5.5% of common shares of XTNT stock could be around the corner.

All in all, XTNT is a stock that’s well worth watching.

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