Novavax to price $200 million seven-year convertible notes to yield 2.75%-3.25%, up 27.5%-32.5%

By Rebecca Melvin

New York, Jan. 25 – Novavax Inc. planned to price $200 million of seven-year convertible senior notes after the market close on Monday to yield 2.75% to 3.25% with an initial conversion price of 27.5% to 32.5%, according to market sources.

The Rule 144A deal has a $30 million greenshoe and was being sold via joint bookrunning managers Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.

J. Wood Capital Advisors is financial adviser to Novavax.

The notes are non-callable and have takeover protection.

Proceeds from the offering are earmarked for clinical-stage vaccine candidates, including phase 3 clinical trials of its RSV F Vaccine in older adults and pregnant women, as well as its other clinical and preclinical research programs, and for general corporate purposes.

In connection with the pricing of the notes, Novavax plans to enter into privately negotiated capped-call transactions with one or more option counterparties.

Novavax is a biotechnology company based in Rockville, Md.

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