TUSTIN, Calif. - Avid Bioservices, Inc. (NASDAQ:CDMO), a biologics contract development and manufacturing organization, has priced $160 million in 7.00% Convertible Senior Notes due March 1, 2029. The sale is expected to close on March 12, 2024, subject to standard closing conditions.
These senior unsecured obligations will pay interest semiannually and may be converted into cash, common stock, or a mix, at the company's discretion. The initial conversion rate is set at 101.1250 shares per $1,000 note, which is about a 12.5% premium over the company's last stock price of $8.79 as of March 6, 2024.
The notes are not redeemable before maturity, and no sinking fund will be established. In the event of a "fundamental change" as defined in the indenture, holders may request the company to repurchase their notes at the principal amount plus accrued interest.
Avid Bioservices plans to use the net proceeds to repurchase a portion of its 1.250% Exchangeable Senior Notes due 2026 and to repay any remaining 2026 Notes. This move follows an acceleration notice received from a holder of the 2026 Notes, making all 2026 Notes due and payable as of February 29, 2024.
The 2029 Notes and any shares of common stock issued upon conversion have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the U.S. without registration or an exemption from such requirements.
This press release, based on a press release statement, contains forward-looking statements, including the completion and use of proceeds from the offering. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.