How do the revised rules in the Bipartisan Budget Act of 2015 affect you and your business?
BOULDER – Boulder-based biopharmaceutical company Clovis Oncology, Inc. (NASDAQ: CLVS) announced that it is offering $250 million in convertible senior notes due in 2021 in a private placement.
In addition, the company has granted the initial buyers of the notes – qualified institutional investors – the right to purchase additional notes worth up to $37.5 million.
Clovis, which makes an array of cancer-fighting drugs, reported a net loss of $65.5 million for the first half of 2014, according to a company statement.
Sponsor Generated Content
The notes, with an interest rate of 2.5 percent per annum payable semi-annually on March 15 and Sept. 15 of each year, will mature on Sept. 15, 2021 unless converted earlier, redeemed or repurchased.
The holders can convert the notes based on an initial conversion rate of 16.1616 shares per $1,000 principal amount of the notes, which is equivalent to the initial conversion price of approximately $61.88 per share of common stock.
The conversion price represents a premium of approximately 42 percent to $43.58 per share, the latest price of Clovis Oncology’s common stock today.
The offering of the notes is expected to close on Sept. 9, 2014.
The net proceeds from the sale of the notes will be used for general corporate purposes, including funding of Clovis Oncology’s development programs, payments of milestones pursuant to its license agreements, general and administrative expense, acquisition or licensing of additional product candidates or businesses and working capital, said Anna Sussman, senior director of investor relations at Clovis Oncology.
Clovis, established in 2009, acquires, develops and commercializes medicines in treatment of lung, ovarian, pancreatic and breast cancers. The company had no revenue in 2013. It employs about 70 people at its Boulder facility.