By Mary de Wet
Avid Bioservices shares fell about 39% in premarket trade Thursday after the company priced a private placement of convertible notes.
The stock recently traded at $5.33 and was down about 41% over 52 weeks as of Wednesday's close.
The $160 million of 7% senior notes due 2029 can be converted into 101.1250 shares of Avid Biosciences' common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of about $9.89 a share, the biologics contract development and manufacturing organization said.
The conversion price is an almost 13% premium to Wednesday's closing price of $8.79.
Avid Bioservices plans to use the proceeds to pay down 1.250% exchangeable senior notes due 2026.
Write to Mary de Wet at mary.dewet@dowjones.com
(END) Dow Jones Newswires
03-07-24 0756ET