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Novocure Announces Closing of $575 Million 0% Convertible Senior Notes Private Placement
Initial conversion price represents a premium of approximately 50% ST. HELIER, Jersey--(BUSINESS WIRE)-- Novocure (NASDAQ: NVCR), a global oncology company
About this update from Novocure Limited
[{"type":"text","content":"\nInitial conversion price represents a premium of approximately 50%\n\n ST. HELIER, Jersey--(BUSINESS WIRE)--\nNovocure (NASDAQ: NVCR), a global oncology company striving to extend survival in some of the most aggressive forms of cancer, today announced the closing of its previously announced offering of $575 million aggregate principal amount of its 0% Convertible Senior Notes due 2025 (the “notes”), which includes the exercise in full by the initial purchasers of their option to purchase an additional $75 million aggregate principal amount of notes, in a private offering (the “offering”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).\n\nNovocure estimates that the net proceeds from the offering will be approximately $558.4 million, after deducting discounts, commissions and estimated offering expenses. Novocure intends to use the net proceeds to further advance its clinical and product development programs and to invest in associated pre-commercial and commercial activities, as well as for general corporate purposes.\n\nThe notes will be senior unsecured obligations of Novocure. The notes will not bear regular interest, and the principal amount of the notes will not accrete. Special interest, if any, payable in accordance with the terms of the notes will be payable in cash semiannually in arrears on May 1 and November 1, beginning on May 1, 2021. The notes will mature on November 1, 2025, unless earlier repurchased, redeemed or converted.\n\nThe notes will be convertible into cash, Novocure’s ordinary shares, or a combination of cash and Novocure’s ordinary shares at Novocure’s election. The initial conversion rate is 5.9439 shares of Novocure’s ordinary shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $168.24 per share of Novocure’s ordinary shares. The initial conversion price of the notes represents a premium of approximately 50% over the $112.16 closing price of Novocure’s ordinary shares on November 2, 2020.\n\nPrior to November 6, 2023, Novocure may redeem the notes, in whole but not in part, only in the event of certain changes in tax law. On or after November 6, 2023, Novocure may redeem for cash all or any portion of the notes, at Novocure’s option, if the last reported sale pr...