PacBio Announces a Private Convertible Exchange Transaction of $459 Million Principal Amount of 1.50% Convertible Senior Notes due 2028
PacBio announced a private convertible exchange transaction involving $459 million of its 1.50% Convertible Senior Notes due 2028. In exchange, the company will issue $200 million in new 1.50% Convertible Senior Notes due 2029, issue 20,451,570 shares of common stock, and make a $50 million cash payment. The new notes will have an initial conversion rate of 204.5157 shares per $1,000 principal amount, equivalent to approximately $4.89 per share. The transaction is expected to close around November 21, 2024, and will result in no remaining 2028 Notes outstanding.
PacBio ha annunciato una transazione privata di scambio convertibile che coinvolge 459 milioni di dollari delle sue Note Senior Convertibili al 1,50% con scadenza nel 2028. In cambio, l'azienda emetterà 200 milioni di dollari in nuove Note Senior Convertibili al 1,50% con scadenza nel 2029, emetterà 20.451.570 azioni di comune e effettuerà un pagamento in contante di 50 milioni di dollari. Le nuove note avranno un tasso di conversione iniziale di 204,5157 azioni per ogni 1.000 dollari di valore nominale, equivalente a circa 4,89 dollari per azione. Si prevede che la transazione si chiuda intorno al 21 novembre 2024 e non ci saranno Note 2028 residue.
PacBio anunció una transacción privada de canje convertible que involucra 459 millones de dólares de sus Bonos Senior Convertibles al 1,50% con vencimiento en 2028. A cambio, la empresa emitirá 200 millones de dólares en nuevos Bonos Senior Convertibles al 1,50% con vencimiento en 2029, emitirá 20.451.570 acciones ordinarias y hará un pago en efectivo de 50 millones de dólares. Los nuevos bonos tendrán una tasa de conversión inicial de 204,5157 acciones por cada 1.000 dólares de valor nominal, equivalente a aproximadamente 4,89 dólares por acción. Se espera que la transacción se cierre alrededor del 21 de noviembre de 2024 y no quedarán bonos del 2028 pendientes.
PacBio는 2028년 만기 1.50% 전환 선순위 채권 4억 5천 9백만 달러를 포함하는 사모 전환 교환 거래를 발표했습니다. 이에 따라 회사는 2029년 만기 1.50% 전환 선순위 채권 2억 달러를 발행하고, 20,451,570 주의 보통주를 발행하며, 5천만 달러의 현금 지급을 할 것입니다. 새로운 채권은 1,000달러의 원금에 대해 204.5157주로 초기 전환 비율을 설정하며, 이는 주당 약 4.89달러에 해당합니다. 이 거래는 2024년 11월 21일 경에 종료될 것으로 예상되며, 2028년의 채권은 남지 않게 될 것입니다.
PacBio a annoncé une opération privée d'échange convertible impliquant 459 millions de dollars de ses Notes Senior Convertibles à 1,50 % arrivant à échéance en 2028. En échange, l'entreprise émettra 200 millions de dollars de nouvelles Notes Senior Convertibles à 1,50 % qui arriveront à échéance en 2029, émettra 20 451 570 actions ordinaires et effectuera un paiement en espèces de 50 millions de dollars. Les nouvelles notes auront un taux de conversion initial de 204,5157 actions pour un montant principal de 1 000 dollars, équivalent à environ 4,89 dollars par action. La transaction devrait se clôturer aux alentours du 21 novembre 2024, et il ne restera plus de Notes 2028 en circulation.
PacBio hat eine private wandelbare Tauschtransaktion angekündigt, die 459 Millionen Dollar ihrer 1,50% wandelbaren Senior Notes, fällig 2028, umfasst. Im Gegenzug wird das Unternehmen 200 Millionen Dollar in neuen 1,50% wandelbaren Senior Notes, fällig 2029, emittieren, 20.451.570 Aktien des Stammkapitals ausgeben und eine Barzahlung von 50 Millionen Dollar leisten. Die neuen Notes werden einen anfänglichen Umtauschsatz von 204,5157 Aktien pro 1.000 Dollar Nominalbetrag haben, was etwa 4,89 Dollar pro Aktie entspricht. Die Transaktion wird voraussichtlich am 21. November 2024 abgeschlossen sein, und es werden keine ausstehenden 2028 Notes mehr vorhanden sein.
- Extension of debt maturity from 2028 to 2029, improving financial flexibility
- Reduction of long-term debt from $459M to $200M
- Maintains same interest rate of 1.50% on new notes
- Significant shareholder dilution through issuance of 20.45M new shares
- $50M cash payment required, impacting company's cash reserves
Insights
This debt restructuring significantly improves PacBio's financial flexibility by extending
This transaction demonstrates smart capital management by:
- Reducing total debt burden by
$259 million - Preserving cash while managing dilution through a balanced approach
- Extending debt maturity by 15 months to August 2029
MENLO PARK, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- PacBio (NASDAQ: PACB), a leading developer of high-quality, highly accurate sequencing solutions, today announced that it has entered into a privately negotiated exchange agreement with a holder of PacBio's remaining outstanding
“This transaction meaningfully reduces and extends the duration of our long-term debt while balancing shareholder dilution and impact to our cash,” said Christian Henry, President and Chief Executive Officer. “This exchange with SB Northstar LP demonstrates the Company’s commitment to our shareholders and customers to optimize our capital structure and build a long-term sustainable business around our industry-leading technologies. With our earliest debt maturities now in August of 2029, this strengthens our financial position and gives us greater flexibility.”
The New Notes will have an initial conversion rate of 204.5157 shares of common stock per
In exchange for issuing the New Notes and Shares and providing the Cash Consideration pursuant to the Exchange Transaction, PacBio will receive and cancel the exchanged 2028 Notes. Following the closing of the Exchange Transaction, there will be no more 2028 Notes outstanding.
Additional information regarding this announcement may be found in a Current Report on Form 8-K that the Company intends to file today with the U.S. Securities and Exchange Commission.
Goldman Sachs & Co. LLC acted as financial advisor to PacBio in connection with the Exchange Transaction.
About PacBio
PacBio (NASDAQ: PACB) is a premier life science technology company that designs, develops, and manufactures advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems. Our products and technologies stem from two highly differentiated core technologies focused on accuracy, quality and completeness which include our HiFi long-read sequencing and our SBB® short-read sequencing technologies. Our products address solutions across a broad set of research applications including human germline sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. For more information, please visit www.pacb.com and follow @PacBio.
PacBio products are provided for Research Use Only. Not for use in diagnostic procedures.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995 regarding the planned offering. All statements other than statements of historical fact are forward-looking statements, including statements relating to PacBio's ability to scale the company, achieve positive cash flow, realize anticipated benefits from the Exchange Transaction and bring innovative sequencing solutions to the market. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, failure to consummate the Exchange Transaction or realize the anticipated benefits of the Exchange Transaction, including due to the satisfaction of customary closing conditions and prevailing market conditions or for other reasons, PacBio's failure to reach positive cash flow when anticipated, if at all, and the impact of general economic, industry or other conditions in the United States or internationally. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, changes in circumstances, and other factors that are, in some cases, beyond PacBio's control and could cause actual results to differ materially from the information expressed or implied by forward-looking statements made in this press release. Readers are strongly encouraged to read the full cautionary statements contained in PacBio's filings with the Securities and Exchange Commission, including the risk factors set forth in PacBio's most recent Quarterly Report on Form 10-Q, filed August 9, 2024. PacBio undertakes no obligation to revise or update information in this press release to reflect events or circumstances in the future, even if new information becomes available.
Contacts
For investors:
Todd Friedman
IR@pacificbiosciences.com
For media:
PR@pacificbiosciences.com
FAQ
What are the terms of PacBio's (PACB) new 2029 convertible notes?
How many shares is PacBio (PACB) issuing in the November 2024 exchange transaction?
What is the total value of PacBio's (PACB) 2028 notes being exchanged?
