A New Cause for Concern: Integer Holdings Adds a New Debt & Financing Risk

Integer Holdings (ITGR) has disclosed a new risk, in the Debt & Financing category.

Integer Holdings faces significant financial risk due to the conditional conversion feature of its 2028 Convertible Notes. Should noteholders opt for early conversion or demand repurchase upon a fundamental change, Integer Holdings’ cash reserves could be substantially depleted, potentially harming liquidity. Moreover, the company might encounter legal and regulatory constraints when attempting to repurchase notes or pay cash upon conversion, risking a default that could trigger cross-defaults on other debts. Additionally, the obligation to reclassify the notes as a current liability under accounting rules could severely diminish Integer Holdings’ net working capital.

Overall, Wall Street has a Moderate Buy consensus rating on ITGR stock based on 3 Buys and 2 Holds.

To learn more about Integer Holdings’ risk factors, click here.