The notes will function as general unsecured obligations, maturing on July 1, 2032, unless converted or redeemed earlier. Interest payments are scheduled semiannually. Upon conversion, the company retains the right to settle obligations in cash, shares of its Class A common stock, or a mix of both. Final terms, including interest rates and conversion thresholds, remain subject to market conditions at the time of pricing.
In section Releases
Nuvation Bio Launches $200 Million Convertible Debt Offering
Nuvation Bio is moving to raise $200 million through an offering of convertible senior notes due in 2032. The oncology company intends to use the capital to retire existing debt and fund general corporate operations, while granting underwriters an option to purchase an additional $30 million in notes to cover over-allotments.
Management plans to allocate the net proceeds toward three primary objectives: covering the costs of capped call transactions, settling all outstanding obligations under its current senior secured loan agreement, and supporting general working capital. To mitigate potential stock dilution, Nuvation Bio expects to enter into capped call agreements with financial institutions. These arrangements are designed to offset cash payments that might exceed the principal amount of the notes during conversion. The offering is being managed by a banking syndicate including Jefferies LLC, Citigroup, Cantor Fitzgerald & Co., and RBC Capital Markets.
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