Cerence announces repurchase of $30M of convertible senior notes

Cerence (CRNC) entered into privately negotiated transactions with certain holders of its 1.50% Convertible Senior Notes Due 2028, pursuant to which the Company agreed to repurchase $30M aggregate principal amount of the Notes from such holders at a cash repurchase price equal to 92% of their principal amount, together with the accrued and unpaid interest thereon to the settlement date. The repurchase of the Notes at a price below par represents a strategic decision by the Company to utilize its cash reserves efficiently. The transaction will reduce interest expense, eliminate potential dilution from refinancing the Notes being repurchased, and lower leverage – intended to deliver a net positive outcome for shareholders. Assuming completion of the repurchase of the Notes, the Company will continue to evaluate cash on hand and the market for the remaining $180M of Notes through maturity in 2028.