Cytokinetics Inc CYTK:NASDAQ

Last Price$50.30NASDAQ Previous Close - Last Trade as of 4:00PM ET 8/12/22

Today's Change+0.83(1.68%)
Bid (Size)$47.54 (3)
Ask (Size)$52.50 (49)
Day Low / High$50.00 - 51.08
Volume850.6 K

Cytokinetics Prices $450 Million Private Placement of Convertible Notes; Doubles Development Loan

4:00AM ET 7/01/2022 MT Newswires
Cytokinetics (CYTK) said Friday it has priced a private placement of $450 million principal amount of 3.5% convertible senior notes due 2027.

Initial purchasers have been granted a 13-day option to purchase up to $90 million additional worth of the notes, according to a statement.

The notes will carry an initial conversion rate of $51.08 per share and are expected to settle on July 6, subject to customary closing conditions.

The net proceeds are estimated to be $436 million before the over-allotment option or $523.3 million if the initial purchasers exercise their over-allotment option in full.

Cytokinetics plans to use $140.3 million of the proceeds, together with the issuance of about 8.1 million shares of common stock, to repurchase $116.9 million outstanding amount of its 2026 notes.

The remainder will be used to fund debt repayments, clinical and development activities, commercial activities, as well as for general corporate purposes, including working capital.

Meanwhile, the company said Royalty Pharma Development Funding has agreed to double the company's development funding loan facility to $50 million from $25 million.

Cytokinetics' shares added almost 8% in Thursday's after-hours trading.

Price: 42.4, Change: +3.11, Percent Change: +7.92