Cytokinetics Shares Drop 15% After Pricing of Private Offering of Notes
June 30 2022 - 07:10AM
Dow Jones News
By Chris Wack
Cytokinetics Inc. shares were down 15% to $41.50 in premarket
trading after the company said it plans to offer $450 million of
convertible senior notes due 2027 in a private offering.
The company expects to grant the initial purchasers of the notes
an option to purchase up to an additional $90 million in notes.
The notes will be senior, unsecured obligations of Cytokinetics
and will accrue interest payable semiannually in arrears. The notes
will mature on July 1, 2027, unless earlier converted, redeemed or
repurchased by Cytokinetics, the company said.
Cytokinetics intends to use a portion of the proceeds from the
offering and to issue shares of its common stock to repurchase a
portion of its outstanding 4.00% convertible senior notes due 2026
through privately negotiated transactions entered into concurrently
with the pricing of the offering, it said.
The company said it intends to use the remainder of the proceeds
of the offering to expand and support its clinical development
program for aficamten in patients with hypertrophic cardiomyopathy;
expand commercial capabilities and conduct readiness activities in
the U.S., Canada and Europe to support the potential launch of
omecamtiv mecarbil and aficamten in those geographies; and advance
its early-stage clinical development pipeline.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
June 30, 2022 06:55 ET (10:55 GMT)
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