Avid Bioservices to price $125 million five-year exchangeable notes

By Abigail W. Adams

Portland, Me., March 8 – Avid Bioservices Inc. plans to price $125 million five-year exchangeable notes in a Rule 144A offering, according to a company press release.

The notes will be issued by Avid SPV LLC and exchangeable for Avid Bioservices shares.

The offering carries a greenshoe of $18.75 million.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread, approximately $41.3 million of the proceeds will be used to redeem the company’s 10.5% series E convertible preferred stock, with remaining proceeds to be used for general corporate purposes.

Avid Bioservices is a Tustin, Calif.-based biologics contract development and manufacturing organization.

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