Cerence repurchases $10M of convertible notes at below-par price

Cerence Inc. (NASDAQ: CRNC) announced it has agreed to repurchase $10 million in aggregate principal amount of its 1.50% Convertible Senior Notes due 2028 through privately negotiated transactions with certain noteholders.

The Burlington, Massachusetts-based company said it will pay 92.75% of the principal amount, plus accrued and unpaid interest through the settlement date, for the notes being repurchased.

According to a press release, the decision was made in light of the company's current cash position and outlook for future cash generation. The company said the transaction is expected to reduce interest expense, eliminate potential dilution from refinancing the repurchased notes, and lower leverage.

Following the completion of the repurchase, Cerence said it will continue to evaluate its cash on hand and market conditions for the remaining $170 million of notes through their maturity in 2028.

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