Cerence announces repurchase of $27M of 3% senior notes

Cerence (CRNC) entered into privately negotiated transactions with certain holders of its 3.00% Convertible Senior Notes Due 2025, pursuant to which the Company agreed to repurchase approximately $27 million aggregate principal amount of the Notes from such holders at a cash repurchase price equal to 98.5% of their principal amount, together with the accrued and unpaid interest to the date of repurchase. 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 currently plans to pay off the remaining $60.5M of Notes upon maturity in June 2025 using cash on hand. In addition, the Company intends to terminate its undrawn $50M senior secured first-lien revolving credit facility, contingent upon completion of the repurchase of the Notes. As a result, the Company will save on ongoing commitment fees.