Dynavax Announces Convertible Debt Refinancing and Common Stock Share Repurchase
Dynavax Technologies (DVAX) has announced a significant debt refinancing initiative and share repurchase program. The company will issue $225 million in 2.0% Convertible Senior Notes due 2030, comprising an exchange for approximately $185 million of existing 2.50% Convertible Senior Notes due 2026 and $40 million in new notes.
The new notes will have an initial conversion price of $18.21 per share, representing a 30% premium over the March 5, 2025 closing price. The company will repurchase about $8 million of common stock and expects to receive $46.5 million from unwinding certain capped call derivatives.
This refinancing extends debt maturity, lowers capital costs, and reduces the total shares underlying the 2026 Notes by nearly 25%. Approximately $40 million of the 2026 Notes will remain outstanding with unchanged terms.
Dynavax Technologies (DVAX) ha annunciato un'importante iniziativa di rifinanziamento del debito e un programma di riacquisto di azioni. L'azienda emetterà 225 milioni di dollari in Note Senior Convertibili al 2,0% con scadenza nel 2030, che comprendono uno scambio per circa 185 milioni di dollari di esistenti Note Senior Convertibili al 2,50% con scadenza nel 2026 e 40 milioni di dollari in nuove note.
Le nuove note avranno un prezzo di conversione iniziale di 18,21 dollari per azione, rappresentando un premio del 30% rispetto al prezzo di chiusura del 5 marzo 2025. L'azienda riacquisterà circa 8 milioni di dollari di azioni ordinarie e prevede di ricevere 46,5 milioni di dollari dallo scioglimento di alcuni derivati capped call.
Questo rifinanziamento estende la scadenza del debito, riduce i costi di capitale e diminuisce il numero totale di azioni sottostanti le Note del 2026 di quasi il 25%. Circa 40 milioni di dollari delle Note del 2026 rimarranno in circolazione con termini invariati.
Dynavax Technologies (DVAX) ha anunciado una importante iniciativa de refinanciamiento de deuda y un programa de recompra de acciones. La compañía emitirá 225 millones de dólares en Notas Senior Convertibles al 2.0% con vencimiento en 2030, que comprenden un intercambio por aproximadamente 185 millones de dólares de Notas Senior Convertibles existentes al 2.50% con vencimiento en 2026 y 40 millones de dólares en nuevas notas.
Las nuevas notas tendrán un precio de conversión inicial de 18.21 dólares por acción, representando una prima del 30% sobre el precio de cierre del 5 de marzo de 2025. La compañía recomprará alrededor de 8 millones de dólares en acciones ordinarias y espera recibir 46.5 millones de dólares de la liquidación de ciertos derivados capped call.
Este refinanciamiento extiende la madurez de la deuda, reduce los costos de capital y disminuye el número total de acciones subyacentes a las Notas de 2026 en casi un 25%. Aproximadamente 40 millones de dólares de las Notas de 2026 permanecerán pendientes con términos sin cambios.
다이나박스 테크놀로지스 (DVAX)는 중요한 부채 재융자 계획과 주식 매입 프로그램을 발표했습니다. 회사는 2억 2천5백만 달러의 2.0% 전환 우선주를 2030년 만기로 발행할 예정이며, 이는 약 1억 8천5백만 달러의 기존 2.50% 전환 우선주(2026년 만기)와 4천만 달러의 새로운 주식으로 교환됩니다.
새로운 주식의 초기 전환 가격은 주당 18.21 달러로, 2025년 3월 5일의 종가 대비 30%의 프리미엄을 나타냅니다. 회사는 약 800만 달러의 보통주를 재매입할 예정이며, 특정 capped call 파생상품의 청산을 통해 4650만 달러를 받을 것으로 예상합니다.
이번 재융자는 부채 만기를 연장하고 자본 비용을 낮추며 2026년 노트의 기초가 되는 총 주식 수를 거의 25% 줄입니다. 약 4천만 달러의 2026년 노트는 변경되지 않은 조건으로 남아 있습니다.
Dynavax Technologies (DVAX) a annoncé une initiative importante de refinancement de la dette et un programme de rachat d'actions. L'entreprise émettra 225 millions de dollars en Obligations Convertibles Senior à 2,0% arrivant à échéance en 2030, comprenant un échange d'environ 185 millions de dollars d'Obligations Convertibles Senior existantes à 2,50% arrivant à échéance en 2026 et 40 millions de dollars en nouvelles obligations.
Les nouvelles obligations auront un prix de conversion initial de 18,21 dollars par action, représentant une prime de 30% par rapport au prix de clôture du 5 mars 2025. L'entreprise prévoit de racheter environ 8 millions de dollars d'actions ordinaires et s'attend à recevoir 46,5 millions de dollars de la liquidation de certains dérivés capped call.
Ce refinancement prolonge l'échéance de la dette, réduit les coûts de capital et diminue le nombre total d'actions sous-jacentes aux Obligations de 2026 de près de 25%. Environ 40 millions de dollars des Obligations de 2026 resteront en circulation avec des conditions inchangées.
Dynavax Technologies (DVAX) hat eine bedeutende Initiative zur Umschuldung von Schulden und ein Aktienrückkaufprogramm angekündigt. Das Unternehmen wird 225 Millionen Dollar in 2,0% wandelbaren Senioranleihen mit Fälligkeit 2030 begeben, was einen Austausch von etwa 185 Millionen Dollar bestehender 2,50% wandelbarer Senioranleihen mit Fälligkeit 2026 und 40 Millionen Dollar in neuen Anleihen umfasst.
Die neuen Anleihen werden einen anfänglichen Wandlungspreis von 18,21 Dollar pro Aktie haben, was einem Aufschlag von 30% gegenüber dem Schlusskurs vom 5. März 2025 entspricht. Das Unternehmen plant, etwa 8 Millionen Dollar an Stammaktien zurückzukaufen und erwartet, 46,5 Millionen Dollar aus der Auflösung bestimmter capped call-Derivate zu erhalten.
Diese Umschuldung verlängert die Laufzeit der Schulden, senkt die Kapitalkosten und reduziert die Gesamtzahl der den 2026er Anleihen zugrunde liegenden Aktien um fast 25%. Etwa 40 Millionen Dollar der 2026er Anleihen bleiben zu unveränderten Bedingungen ausstehend.
- Debt maturity extended from 2026 to 2030
- Lower interest rate from 2.50% to 2.0%
- 25% reduction in shares underlying 2026 Notes
- $46.5M cash inflow from unwinding capped calls
- $8M share repurchase program implemented
- Total debt increased by $40M with new notes issuance
- Potential future dilution with $225M convertible notes
Insights
Dynavax's debt refinancing represents a strategic financial maneuver with several positive implications for the company's capital structure. The transaction effectively extends $185 million of debt maturity from 2026 to 2030, providing four additional years of financial flexibility while simultaneously reducing the interest rate from 2.50% to 2.00%.
The refinancing includes a 30% premium on the conversion price ($18.21 vs current price of $14.01), which helps protect against dilution compared to the previous notes. Importantly, the company is reducing the total shares underlying the 2026 Notes by nearly 25%, a significant anti-dilutive action that benefits existing shareholders.
The financial engineering here is particularly elegant - Dynavax is unwinding capped call derivatives to receive $46.5 million, which largely offsets the $40 million in new money raised. This creates essentially neutral net debt impact while improving terms across the board. The additional $8 million share repurchase further demonstrates commitment to shareholder value and confidence in the company's intrinsic worth.
This transaction strengthens Dynavax's financial foundation by creating a more favorable debt profile with extended maturities, lower interest costs, and reduced potential dilution - all without substantially increasing leverage. The ability to execute this type of opportunistic refinancing suggests management's financial acumen and indicates that capital markets view Dynavax's long-term prospects favorably.
- Opportunistic refinancing extends the maturity of most of existing debt with improved terms and reduces dilution to existing capital structure
$225 million ~ of existing convertible notes due in 2026 and$185 million ~ of new money$40 million - Dynavax repurchased
~ of the Company's common stock in connection with this transaction$8 million
The conversion price of the New Notes will initially be
In connection with the Transactions, Dynavax entered into agreements with certain of the existing capped call counterparties to unwind a portion of the existing capped call derivatives in a notional amount corresponding to the number of common shares underlying the 2026 Notes to be retired. Dynavax expects to receive approximately
Additionally, the Company intends to repurchase approximately
Kelly MacDonald, Chief Financial Officer of Dynavax said, "We continue to make progress across our strategic priorities, including strengthening our overall financial profile. This opportunistic refinancing accomplishes several of our liability management objectives in a highly efficient way by extending the maturity of a large portion of our existing debt, lowering overall cost of capital with meaningfully improved terms, reducing total shares underlying the 2026 Notes by nearly
Additional information regarding this announcement may be found in a Current Report on Form 8-K that Dynavax intends to file today with the
The New Notes and any shares of common stock issuable upon conversion of the New Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in
About Dynavax
Dynavax is a commercial-stage biopharmaceutical company developing and commercializing innovative vaccines to help protect the world against infectious diseases. The Company has two commercial products, HEPLISAV-B® vaccine [Hepatitis B Vaccine (Recombinant), Adjuvanted], which is approved in the
Forward-Looking Statements
This press release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to a number of risks and uncertainties. All statements that are not historical facts are forward-looking statements. Forward-looking statements can generally be identified by the use of words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "will," "may," "plan," "project," "potential," "seek," "should," "think," "toward," "will," "would" and similar expressions, or the negatives thereof, or they may use future dates. Forward-looking statements made in this document include statements regarding the expected benefits of the Transactions, including the impact on current or future dilution, the amount of debt under the 2026 Notes to remain outstanding, our cost of capital and positioning us to execute on our balanced strategy to deliver near-term value while also investing in our long-term growth and the use of proceeds from the Transactions and the unwind transactions. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in our business, including, the risk that the transactions may not provide all or a portion of the expected benefits, risks relating to our ability to successfully execute on the remaining portions of our stated strategy, as well as other risks detailed in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024 and periodic filings made thereafter, as well as discussions of potential risks, uncertainties and other important factors in our other filings with the
For Investors/Media:
Paul Cox
pcox@dynavax.com
510-665-0499
Nicole Arndt
narndt@dynavax.com
510-665-7264
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SOURCE Dynavax Technologies
FAQ
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