By Abigail W. Adams
Portland, Me., March 7 – Avid Bioservices Inc. sold $160 million of 7% convertible senior notes due 2029 after the market close on Wednesday with an initial conversion price of 12.5%, according to a company news release.
The notes were sold via a Section 4(a)(2) private placement with several qualified institutional buyers.
The notes are non-callable.
They are putable upon a fundamental change.
Proceeds will be used to repurchase for cash a portion of the 1.25% exchangeable notes due 2026 in privately negotiated transactions and repay in full any outstanding amounts after the repurchases.
The 1.25% exchangeable notes due 2026 were the subject of an acceleration notice received from a holder of more than 25% of the outstanding amount who declared the full outstanding amount and unpaid interest to be due immediately due to an event of default.
The acceleration notice was received on Feb. 29 with the acceleration amount $146 million, according to an 8-K filing with the Securities and Exchange Commission.
Avid Bioservices is a Tustin, Calif.-based biologics contract development and manufacturing organization.
| Issuer: | Avid Bioservices Inc.
|
| Amount: | $160 million
|
| Greenshoe: | None
|
| Issue: | Convertible senior notes
|
| Maturity: | March 1, 2029
|
| Coupon: | 7%
|
| Conversion premium: | 12.5%
|
| Conversion price: | $9.89
|
| Conversion rate: | 101.125
|
| Call options: | Non-callable
|
| Put options: | Upon a fundamental change
|
| Pricing date: | March 6
|
| Settlement date: | March 12
|
| Distribution: | Section 4(a)(2)
|
| Stock symbol: | Nasdaq: CDMO
|
| Stock price: | $8.79
|
| Market capitalization: | $401.57 million
|
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