Glaukos Corporation (NYSE:GKOS), a medical device company, has entered into agreements to partially unwind specific capped call transactions related to its convertible senior notes. The agreements, established on Monday with various financial institutions, will result in a cash settlement based on the average price of the company's stock starting today.
The Aliso Viejo, California-based company originally entered into the capped call transactions to minimize the potential dilution to its common stock upon any conversion of its 2.75% Convertible Senior Notes due in 2027. These notes were issued with an aggregate principal amount of $287.5 million. The unwind agreements affect half of the shares initially underlying the notes.
The cash amount to be received by Glaukos from the option counterparties will be determined by the volume-weighted average price of Glaukos' common stock during an averaging period, which begins today. The specific terms of the Capped Call Unwind Agreements are detailed in a form filed with the SEC and incorporated by reference into the 8-K report.
This transaction is significant for Glaukos as it adjusts the company's financial instruments associated with its convertible notes. The move is part of the company's financial management strategies, particularly related to its equity and debt instruments.
Investors and stakeholders in Glaukos Corporation can find further details of the agreements in the company's latest 8-K filing with the Securities and Exchange Commission. This filing provides a comprehensive view of the agreements' structure and financial implications based on the press release statement.
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