Cytokinetics prices $450M of convertible debt offering

Cytokinetics, Incorporated (NASDAQ:CYTK) has priced its offering of $450.0M aggregate principal amount of 3.50% convertible senior notes due 2027.

The issuance and sale of the notes are scheduled to settle on July 6, 2022.

The initial purchasers are granted an option to purchase an additional $90.0M aggregate principal amount of notes.

The notes will accrue interest at an annual rate of 3.50%, payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2023.

The notes will mature on July 1, 2027.

The initial conversion rate is 19.5783 shares of common stock per $1,000 principal amount of notes, represents an initial conversion price of ~$51.08/share of common stock.

The initial conversion price represents a premium of 30.0% over the last reported sale price of $39.29/share of Cytokinetics’ common stock on June 30, 2022.

The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.

The net proceeds from the offering will be approximately $436.0M and will be used to repurchase ~$116.9M aggregate principal amount of 4.00% convertible senior notes due 2026, entered into concurrently with the pricing of the offering.

Remainder of the net proceeds will be used to expand its clinical development pipeline, commercial capabilities and its research activities and for general corporate purposes, including working capital.

Share are up 7.9% after-hours.