The CHF 200 million convertible bonds (CB 2025) issued in 2018 (ISIN CH0426820350) initially had a term of six years, maturing on July 17, 2024. On May 6, 2024, a bondholders’ meeting approved modifications to the terms of the convertible bonds to, among others, amend the conversion price to CHF 6.00 per Idorsia share (from CHF 33.95) and extend the maturity date by six months to January 17, 2025.
On 20 December 2024, Idorsia announced that an extension to the CB 2025 is required given the near-term maturity and the inability of the company to repay the bonds at this time.
It also announced that the company is in discussions with certain holders of the CB 2025 and the CHF 600,000,000 Senior Unsecured Convertible Bonds due 2028 (Swiss Security Number: 112800407; ISIN CH1128004079) (the CB 2028) to amend the terms of both instruments following the extension of the CB 2025. Based on Idorsia's liquidity forecasts, the restructuring of the company’s outstanding debt, including the CB 2025 and the CB 2028 is one of the prerequisites to allow the company to continue to operate on a long-term basis.
In order to implement the extension of the CB 2025 as the first step of the restructuring, Idorsia called a bondholder meeting in accordance with articles 1164 et seqq. of the Swiss Code of Obligations (the Bondholder Meeting).