PacBio Announces Issuance Of $441 Mln Of Senior Notes

(RTTNews) - Pacific Biosciences of California, Inc. (PACB) said on Monday that it agreed with a holder of its 1.50 percent convertible senior notes due 2028, by which PacBio will issue $441 million of 1.375 percent convertible senior notes due 2030 in exchange for $441 million of the 2028 notes. The transaction is expected to be closed on or about June 30.

Christian Henry, CEO of PacBio, said: "In 2021, we issued $900 million in convertible notes due in 2028, enabling us to scale the company for growth. By exchanging a portion of these notes, we have extended the duration of our debt, and with our plans to achieve positive cash flows during 2026, this further strengthens our financial position and gives us greater flexibility."

The new notes will have an initial conversion rate of 46.5116 shares of PacBio per $1,000 principal amount of the new notes, which is equal to an initial conversion price of around $21.50 per share.

The notes will mature on December 15, 2030 carrying semi-annual interest on each June 15 and December 15, commencing on December 15, 2023.

PacBio will receive and cancel the exchanged 2028 notes. Following the closing of the exchange transaction, $459 million in aggregate principal amount of 2028 notes will remain outstanding with terms unchanged.

Goldman Sachs & Co. LLC served as an exclusive financial advisor to PacBio in connection with the exchange deal.