By Wendy Van Sickle
Columbus, Ohio, Jan. 25 – Novavax, Inc. priced an upsized $300 million of seven-year convertible senior notes at par to yield 3.75% with an initial conversion premium of 22.5% on Monday, according to a news release.
The notes priced cheaper than the 2.75% to 3.25% coupon and 27.5% to 32.5% conversion premium at which they had been talked.
The Rule 144A deal was upsized from $200 million and has a $30 million greenshoe. It was 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 entered into privately negotiated capped-call transactions with one or more option counterparties.
Novavax is a biotechnology company based in Rockville, Md.
| Issuer: | Novavax Inc.
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| Issue: | Convertible senior notes
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| Amount: | $300 million
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| Greenshoe: | $30 million
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| Maturity: | Feb. 1, 2023
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| Bookrunners: | Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
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| Coupon: | 3.75%, payable semiannually
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| Price: | Par
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| Yield: | 3.75%
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| Conversion premium: | 22.5%
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| Conversion price: | $6.81
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| Call: | Non-callable
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| Pricing date: | Jan. 25
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| Distribution: | Rule 144A
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| Stock symbol: | Nasdaq: NVAX
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| Stock price: | $5.56 at close Jan. 25
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