Amyris Executes Agreements to Resolve CVI Heights Debt
Amyris, Inc., a production company for sustainable ingredients for the Health & Wellness, Clean Beauty and Flavors & Fragrances markets, today announced that definitive agreements have been entered into providing for the purchase of its existing CVI Heights convertible note by two "accredited investors" (as defined in Rule 501 of Regulation D promulgated under the Securities Act of 1933) and subsequent exchange of such note for new unsecured convertible senior notes (the "Notes") in the amount of $66 million in a private exchange.
The closing of the purchase and exchange transactions and issuance of the new Notes is expected to occur by November 12, 2019, subject to customary closing conditions. As a result, the CVI Heights debt will be retired, thus curing the prior default of this debt, and Amyris will incur the new Notes as debt. The Notes will mature on September 30, 2022.
The conversion price for the Notes will be $5.00. The company can redeem the Notes at any time at a 15% premium to the greater of the principal amount or conversion value.
The Notes will amortize and accrue interest at a rate of 5% per annum, payable monthly starting on February 1, 2020 in cash, or subject to certain equity conditions, in shares of common stock. At the company's option, amortization payments may be paid in cash, or subject to certain equity conditions, in shares of common stock. The company currently intends to repay the interest and debt in cash.
The Notes and any shares of common stock issuable upon conversion of the Notes or otherwise have not been registered under the Securities Act of 1933, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
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