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Novocure Prices $500 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 pricing of $500 million aggregate principal amount of its 0% Convertible Senior Notes due 2025 (the “notes”) through a private placement (the “offering”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Novocure also granted the initial purchasers an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $75 million aggregate principal amount of notes. The offering is expected to close on November 5, 2020, subject to customary closing conditions.\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\nNovocure estimates that the net proceeds from the offering will be approximately $485.5 million (or approximately $558.4 million if the initial purchasers exercise in full their option to purchase additional notes), 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 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 Nov...