Pacific Biosciences exchanges $441 million 1.5% convertibles due 2028

By Mary-Katherine Stinson

Lexington, Ky., June 26 – Pacific Biosciences of California, Inc. entered into a privately negotiated agreement with a holder of the company’s outstanding 1.5% convertible senior notes due 2028 in which PacBio will issue $441 million of its 1.375% convertible senior notes due Dec. 15, 2030 in exchange for $441 million of the 2028 notes, according to press release.

The deal is expected to close on June 30.

The exchanged 2028 notes will be canceled.

The new notes will have an initial conversion rate of 46.5116 shares of PacBio's common stock per $1,000 principal amount of the new notes, equal to an initial conversion price of approximately $21.50 per share, subject to customary anti-dilution and other adjustments.

If the notes are converted, the company will have the right to elect settlement in cash, shares or a combination.

Following the exchange, $459 million in total principal of 2028 notes will remain outstanding with their terms unchanged.

The 2028 notes were originally issued in 2021 in an original issue size of $900 million.

Goldman Sachs & Co. LLC acted as exclusive financial adviser to PacBio on the transaction.

The Menlo Park, Calif., company develops, manufactures and markets an integrated platform for genetic analysis.

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