Novavax Prices Offering Of $150 Mln, 5% Senior Notes

Novavax, Inc. (NVAX), a vaccine maker focused on serious infectious diseases, said it has priced an offering of $150 million of its 5 percent convertible senior notes due December 15, 2027.

In addition, the firm also priced its previously announced underwritten public offering to sell up to 6.5 million shares for $10 per share.

Novavax may use the net proceeds from the offering of the notes and, if consummated, the concurrent common stock offering, for general corporate purposes.

It will also use the for global commercial launch of Nuvaxovid, repayment or repurchase of a portion of the $325 million in outstanding principal amount of its 3.75 percent convertible senior unsecured notes due February 1, 2023, and working capital requirements.

The offering of the senior notes is scheduled to be on December 20.

The vaccine company has granted to the initial purchasers a 30-day option to purchase up to an additional $25.25 million aggregate principal amount of the notes. The notes will be convertible at an initial conversion rate of 80 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of $12.50 per share.

Novavax estimates that the net proceeds from the offering of the notes will be around $142.2 million or $166.3 million, if the initial purchasers exercise in full their option to purchase additional notes.

In addition, Novavax also priced the previously announced public offering of up to 6.5 million shares, worth $65 million, at $10 per share. The offering is expected to close on December 20.

The drug maker has also granted the underwriters a 30-day option to purchase up to an additional 975,000 shares at the public offering price.

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