Avid Bioservices Announces Proposed $160M Private Placement Of Convertible Notes Due 2029
Portfolio Pulse from Benzinga Newsdesk
Avid Bioservices, Inc. (CDMO) plans to offer $160M in Convertible Senior Notes due 2029 in a private placement to qualified institutional buyers. The proceeds will be used to repurchase and repay part of its 2026 Exchangeable Senior Notes and to unwind capped call transactions related to the 2026 Notes. This could lead to sales of CDMO's common stock, potentially affecting its market price.
March 06, 2024 | 9:58 pm
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Avid Bioservices plans a $160M offering of Convertible Notes to manage 2026 Notes debt, potentially affecting its stock price due to related stock sales.
The offering of Convertible Notes by CDMO is aimed at managing existing debt obligations and unwinding capped call transactions. This financial maneuver is significant as it involves repurchasing and repaying part of its 2026 Notes, which directly impacts the company's financial structure. Additionally, the expected sale of CDMO's common stock by counterparties to unwind derivatives could lead to a decrease in the market price of CDMO's stock in the short term, hence the negative score.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100