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Innoviva, Inc. Prices Upsized Offering of $225 Million of 2.125% Convertible Senior Notes
Proceeds expected to be used to repurchase a portion of the 2023 Notes, fund capped call transactions, and for general corporate purposes BURLINGAME,
About this update from Innoviva, Inc.
[{"type":"text","content":"\n\nProceeds expected to be used to repurchase a portion of the 2023 Notes, fund capped call transactions, and for general corporate purposes\n\n\n BURLINGAME, Calif.--(BUSINESS WIRE)--\nInnoviva, Inc. (NASDAQ: INVA) (the “Company” or “Innoviva”) today announced the pricing of $225 million aggregate principal amount of the Company’s 2.125% convertible senior notes due 2028 (the “Notes”). The size of the offering was increased from the previously announced offering size of $200 million. The Notes will be sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”). The Company also granted the initial purchasers of the Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $45 million aggregate principal amount of the Notes. The offering is expected to close on March 7, 2022, subject to satisfaction of customary closing conditions.\n\nThe Notes will mature on March 15, 2028, unless earlier converted, redeemed or repurchased in accordance with their terms. The Notes will be unsecured, senior obligations of Innoviva, and will accrue interest at a rate of 2.125% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2022.\n\nThe Notes will be convertible, based on the applicable conversion rate, into cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. The initial conversion rate for the Notes is 38.1432 shares of the Company’s common stock per $1,000 principal amount of the Notes (which is equivalent to an initial conversion price of approximately $26.22 per share), representing a 35.0% conversion premium over the last reported sale price of Company’s common stock on March 2, 2022, which was $19.42 per share. The conversion rate is subject to customary anti-dilution adjustments in certain circumstances. Prior to September 15, 2027, the Notes will be convertible at the option of the holders only upon the occurrence of specified events and during certain periods. From, and including, September 15, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date, the Notes will be convertible at any time.\n\nThe Notes wi...