Cerence repurchases $30 million of convertible notes at discount

Cerence Inc. (NASDAQ: CRNC) announced it entered into privately negotiated transactions to repurchase $30 million of its 1.50% Convertible Senior Notes Due 2028. The company will pay 92% of the principal amount plus accrued interest to the settlement date.

The Burlington, Massachusetts-based conversational AI company said the below-par purchase price reflects its strategy to use cash reserves efficiently. The transaction aims to reduce interest expense, eliminate potential dilution from refinancing, and lower leverage.

Following the repurchase, Cerence will have $180 million in convertible notes remaining until their 2028 maturity. The company stated it will continue evaluating its cash position and market conditions for the remaining notes.

Cerence develops AI-powered user experiences for automotive and transportation sectors. The company reports that more than 525 million cars have shipped with its technology and that it partners with automakers, transportation original equipment manufacturers, and technology companies.

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