Benefitfocus Agrees to Repurchase Certain of Its Outstanding Convertible Senior Notes
Benefitfocus Agrees to Repurchase Convertible Notes Benefitfocus (NASDAQ: BNFT) announced a repurchase of approximately $114 million in principal amount of its 1.25% Convertible Senior Notes due 2023 for around $111 million in cash.
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Rhea-AI Summary
Benefitfocus Agrees to Repurchase Convertible Notes
Benefitfocus (NASDAQ: BNFT) announced a repurchase of approximately $114 million in principal amount of its 1.25% Convertible Senior Notes due 2023 for around $111 million in cash. This transaction, set to close on August 31, 2022, is part of the company's strategy to extend its debt maturity profile and is funded through its new Senior Secured Credit Facility. The repurchase is advantageous as it allows the company to mitigate financial obligations while potentially enhancing shareholder value.
Positive
- Repurchase of $114 million in convertible notes for $111 million improves debt maturity profile.
- Transaction expected to enhance shareholder value by reducing outstanding debt.
Negative
- Utilizing new credit facility for repurchase may lead to increased financial strain.
- Market uncertainty due to reliance on debt restructuring could affect stock performance.
Details
News Market Reaction – BNFT
The recorded move for BNFT in the trading session of this news was -1.32%.
Data tracked by StockTitan Argus. Session date unavailable.
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Extends Debt Maturity Profile through Repurchase
CHARLESTON, S.C., Aug. 26, 2022 (GLOBE NEWSWIRE) -- Benefitfocus Inc. (NASDAQ: BNFT) (“Benefitfocus” or the “Company”), an industry-leading cloud-based benefits administration technology company that simplifies benefits administration for employers, health plans and brokers, today announced that it has agreed to repurchase certain of its
This press release does not constitute an offer to sell or a solicitation to buy any of the securities described herein, nor shall there be any offer, solicitation, or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Benefitfocus
Benefitfocus (NASDAQ: BNFT) is a cloud-based benefits administration technology company committed to helping our customers, and the people they serve, get the most out of their health care and benefit programs. Through exceptional service and innovative SaaS solutions, we aim to be the safest set of hands for our customers helping to simplify the complexity of benefits administration while delivering an experience that engages people and unlocks the potential for better health and improved outcomes. Our mission is simple: to improve lives with benefits.
Safe Harbor Statement
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: risks regarding whether we can complete the repurchases of the 2023 Notes and regarding the impact of the repurchases on the trading price of our common stock; our need to increase sales and achieve consistent GAAP profitability, particularly in light of our outstanding debt; fluctuations in our financial results; our ability to maintain our culture and recruit, integrate and retain qualified personnel, including on our board of directors; our ability to compete effectively and implement our growth strategy; our reliance on channel relationships; market developments and opportunities; the need to innovate and provide useful products and services; risks related to changing healthcare and other applicable regulations; the immature and volatile nature of the market for our products and services; privacy; security and other risks associated with our business; management of growth; volatility and uncertainty in the global economy and financial markets in light of rising inflation, the evolving COVID-19 pandemic and war in Ukraine; and the other risk factors set forth from time to time in our SEC filings, copies of which are available free of charge within the Investor Relations section of the Benefitfocus website at http://investor.benefitfocus.com/sec-filings or upon request from our Investor Relations Department. Benefitfocus assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Media Contact:
843-981-8898
pr@benefitfocus.com
Investor Relations:
Doug Kuckelman
843-790-7460
ir@benefitfocus.com
Source: Benefitfocus, Inc.
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