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Dynavax Technologies Prices Convertible Senior Note Offering

05/11/2021 06:08

10:01 AM EDT, 05/11/2021 (MT Newswires) -- Dynavax Technologies (DVAX) has priced $200 million of 2.50% convertible senior notes due 2026.

The biopharmaceutical company granted the initial purchasers of the notes an option to buy up to an additional $30 million of notes. The offering, which is expected to close May 13, will result in estimated net proceeds of approximately $195.1 million, or approximately $224.4 million if additional notes are fully sold.

Dynavax said the proceeds, together with cash on hand, will be used to repay the outstanding debt and other obligations under its term loan agreement, and to fund the costs of certain capped call transactions.

If additional notes are fully sold, the company expects to use approximately $3.6 million of the net proceeds from the sale of such notes to enter into additional capped call transactions. Any remaining net proceeds from the sale of additional notes will be used for general corporate purposes.

Shares of Dynavax were down nearly 4% in early trading.

Price: 7.61, Change: -0.29, Percent Change: -3.67