Item 1.01 Entry into a Material Definitive Agreement.
Exchange Transactions
On
The Company issued the 2022 Notes in exchange for
The 2022 Notes were offered, issued and sold in the Exchange Transactions in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"). The offer and sale of the 2022 Notes have not been registered under the Securities Act, or any state securities laws, and unless so registered, the 2022 Notes may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
The 2022 Notes bear cash interest at the rate of 6.25% per annum, payable
semiannually in arrears on
The conversion rate for the 2022 Notes will initially be 31.1876 shares of the
Company's common stock per
The Company may redeem for cash all or any portion of the 2022 Notes, at its option, if the last reported sale price of its common stock is equal to or greater than 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending within the five trading days immediately preceding the date on which the Company provides written notice of redemption. The redemption price will be equal to 100% of the principal amount of the principal amount of 2022 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.
The 2022 Notes Indenture contains customary terms and covenants and events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving the Company) occurs and is continuing, the 2022 Notes Trustee or the holders of at least 25% in aggregate principal amount of the outstanding 2022 Notes may declare 100% of the principal of, and any accrued and unpaid interest on, all of the 2022 Notes to be due and payable. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of and accrued and unpaid interest, if any, on all of the 2022 Notes will become due and payable automatically. Notwithstanding the foregoing, the 2022 Notes Indenture provides that, to the extent the Company elects and for up to 180 days, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the 2022 Notes Indenture consists exclusively of the right to receive additional interest on the 2022 Notes.
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The foregoing description of the 2022 Notes Indenture and the 2022 Notes does not purport to be complete and is qualified in its entirety by reference to the full text of the 2022 Notes Indenture and the Form of 2022 Note. Copies of the Second Supplemental Indenture and the Form of 2022 Note are filed as Exhibit 4.2 and Exhibit 4.2.1, respectively, to this Current Report on Form 8-K and incorporated by reference herein.
Amendment to 2021 Notes Indenture
In connection with the Exchange Transactions described above, the Company
received the requisite consents from holders of 2021 Notes to amend the First
Supplemental Indenture, dated as of
The foregoing description of the 2021 Notes Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the 2021 Notes Amendment, a copy of which is filed as Exhibit 4.1 to this Current Report on Form 8-K and incorporated by reference herein.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 of this Current Report on Form 8-K regarding the 2022 Notes is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description 4.1 Amendment to First Supplemental Indenture, dated as ofFebruary 18, 2020 , betweenRocket Pharmaceuticals, Inc. andWilmington Trust, National Association , as trustee. 4.2 Second Supplemental Indenture, dated as ofFebruary 20, 2020 , betweenRocket Pharmaceuticals, Inc. andWilmington Trust, National Association , as trustee. Form of 6.25% Convertible Senior Note due 2022 (included as part of 4.2.1 Exhibit 4.2).
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