aibioXeris exchanges $23 million of 2028 convertible notes for cash and stock
Tickers XERS
Xeris will retire about $23 million of its 8.00% convertible notes due 2028 for about $23 million in cash plus common stock, with Morgan Stanley as placement agent. About $10.5 million of the notes will remain outstanding.
Key facts
- Company
- Xeris Biopharma Holdings, Inc. (NASDAQ: XERS)
- News type
- Debt Financing
- Primary source
- SEC Form 8-K
The exchange agreements
Xeris Biopharma Holdings, Inc. (Nasdaq: XERS) entered into separate, privately negotiated exchange agreements with certain holders of its 8.00% Convertible Senior Notes due 2028. Subject to customary closing conditions, the company agreed to retire about $23 million of aggregate principal. The announcement is dated June 11, 2026.
The exchange consideration is about $23 million in cash plus common stock. The number of shares depends on the volume-weighted average price over a 21-trading-day averaging period that starts June 11, 2026. The company's illustration assumes the stock trades each day at $6.71, its June 10, 2026 closing price, and on that basis it expects to issue about 4.6 million shares. The share count will move with the stock during the averaging period, so that figure is an assumption rather than a fixed number. After the closing, $10.5 million of principal will remain outstanding.
Cash, shares and savings
The cash component of about $23 million matches the principal retired. The exchange therefore uses cash to remove debt, and the shares add to the existing share count. The company says the exchanges eliminate about $23 million of debt and produce about $2 million in annual interest savings. The release does not give the interest the company paid on these notes in 2025, so that saving cannot be checked.
The shares are issued under the private placement exemption in Section 4(a)(2) of the Securities Act. They have not been registered under the Securities Act or any state securities law, and they cannot be offered in the United States without registration or another exemption.
Who is named
Morgan Stanley acted as placement agent for the company in connection with the exchanges. The release names no other placement agent or financial advisor, and no legal counsel. The holders who agreed to the exchanges are not named.
Results and cash flow
The annual report, filed March 2, 2026, shows research and development expense of $31.2 million in 2025, up from $25.6 million in 2024. It reports net income of $554,000 for 2025, after a net loss of $54.8 million in 2024. Cash provided by operations was $28.6 million in 2025, against cash used of $37.0 million in 2024.
Neither the XBRL data nor the annual report passage cited here explains the swing to net income. At the end of 2024 the company held $71.6 million in cash and cash equivalents and no short-term investments.
The products
Xeris sells Recorlev for endogenous Cushing's syndrome, Gvoke for severe hypoglycemia and Keveyis for primary periodic paralysis. The annual report says Recorlev could reach about $1 billion in annual net revenue at peak penetration. That is a company estimate. Recorlev also competes with older generic drugs used off-label for the same indication, and the report says many patients are inadequately treated with current options.
The passage cited here gives no sales figures for the three products, so the estimates cannot be set against actual revenue. The report adds that Recorlev has orphan drug exclusivity in the United States through December 30, 2028 and patent protection through 2040. The company's lead pipeline product, XP-8121, is a once-weekly subcutaneous levothyroxine that the company plans to take into a Phase 3 trial in 2026. The company's June release calls XP-8121 Phase 3-ready and does not say whether that trial has started.
What the exchange leaves
After the closing, $10.5 million of the 8.00% notes will remain outstanding. The release does not give the conversion price or other terms of the notes that remain, so the dilution they could cause cannot be measured.