Theratechnologies Inc T.TH

Financing - ideal

[SPCEO1]

My initial reaction is this is perfect. The opposite of the ONO and indicative of confidence in the future of TH. I will have a closer look later.

[palinc2000]

Need to see the fine prints      tee time in 5 minutes will look thid afternoon  

[SPCEO1]

If nothing else, it removes the overhang of another ONO from the stock. But will anyone even notice at this point? The stock should jump a lot on this deal because of the removed dilution overhang, the immediate benefit to cash flow over the next 2 years (maybe three years) and the backing of a major healthcare lender of TH's plans for the future. 

[Wino115]

Dies anyone know the current price of the convertible (as of yesterday)?   

[SPCEO1]

Last trade was at $75.50

[realitycheck4u]

This post has been removed in accordance with Community Policy

[Wino115]

Then roughly buying $30mil principal will only cost around $24mil. Very smart use of proceeds. So there goes well over half the debt, half the interest for only $24 mil.

[SPCEO1]

I am pretty sure they will be paying more than $75.50 for the converts they buy but your point still stands. 

[palinc2000]

I dont understand your comment...The transfer of ownership from one group to another has no impact on THTX   Marathon "s financing makes the Convert much less risky  of Default and Marathon will make a profit of 6 million but THTX still need to repay that 30 million   Does Marathon expect the SP to be over the Convert Price and participate in the equity?

[palinc2000]

OUPS MY BAD ...I thought Marathon was buying the Convert   Smart move indeed SORRY SORRY SORRY

[palinc2000]

However the price paid is not 75.50 ...It is probably around 95 $...

[SPCEO1]

I would like to think the price paid for the repurchased converts is not quite that high but you may be closer to the mark. Since the sellers now know the converts will be redeemed at par, they don't have much incentive to offer a big discount.

[SPCEO1]

According to Bloomberg, which may not be accurate with regard to current bond prices, the convert is bid at $75.50 and asked at $85. You would think the ask price would be higher given the certainty of receiving $100 per bond next June. It appears it is not only the stock that ignores big news but the convert also.

[palinc2000]

We dont lnow who the seller(s) were but as you point  point out the default risk is probably cliose to nil so I dont think an informed seller would sell much at a discount greater than the time value of money or close to it I dont think uou would pick up any large number of Convert at 85$ ...if you could that would be a very good return

[SPCEO1]

I once found something on the maze that is Bloomberg that identified the owners of most of te converts. Unfortunately, I have not been able to find it again but my recollection was there was one large holder. I imagine someone out there has as their business model to acquire converts that do not look like they are going to convert and where the financing is not yet in place to refi them, on the

[palinc2000]

I just listened to the written question part of the CC and Dubuc mentioned that the 5%discount was about right...I was not the one who asked ......Not major but ,,,,

[LouisW]

I am curious about what milestones might be. I guess that related to Th1902 or maybe NASH. Will TH disclose the infomation?

[Wino115]

Probably Th 1902 trial and commercialization but definitely revenue and cash generation targets.  Lenders just want to be paid.  Also, it is senior secured, meaning there is something the lender will have ownership over if unpaid --perhaps EGIFTA rights or something like that.   

[SPCEO1]

It makes sense that it is secured by rights to Egrifta. Which means Marathon looked closely at the chances for those revenues to evaporate from generic competition and clearly concluded that is not likely. Also good news.

[realitycheck4u]

This post has been removed in accordance with Community Policy

[qwerty22]

NASH not mentioned as a priority.  

[Greenviolino]

Huge. This will take care of the convertible deb repayment. An additional vote of confidence from an institutional investor. Due diligence involved vets the oncology program. Breathing room for TH management to execute their plan.