Novavax (NASDAQ:NVAX) shares tumbled Thursday after the drug maker announced a $125 million common stock offering and a $125 million offering of convertible debt.
The biotechnology company dedicated to developing and commercializing next-generation vaccines for serious infectious diseases, today announced a proposed offering of $125 million aggregate principal amount of convertible senior notes due 2027.
The notes will represent senior unsecured obligations of Novavax and will accrue interest payable semi-annually in arrears and will mature on December 15, 2027 , unless earlier converted, redeemed or repurchased.
Novavax will settle conversions by paying or delivering, as applicable, cash, shares of its common stock, par value $0.01 per share, or a combination of cash and shares of its common stock, at Novavax' election. The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Novavax' option at any time, and from time to time, on or after December 22, 2025, if the last reported sale price of common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), during any 30 consecutive trading day period.
NVAX shares lost $3.40, or 19.7%, to $13.84.
