Adaptive Biotechnologies announced the issuance of $345 million in 0% Convertible Senior Notes due 2031, including the full exercise of a $45 million option by initial purchasers. The company received net proceeds of approximately $334.5 million, which were primarily used to terminate a revenue interest financing agreement, repurchase common stock, and execute capped call transactions to limit potential dilution.
Key Details
- Financing Terms: The senior, unsecured notes mature on July 1, 2031, and have an initial conversion price of approximately $24.11 per share, representing a 40% premium over the stock price of $17.22 on June 16, 2026.
- Use of Proceeds: $156.9 million was used to fully repay and terminate the OrbiMed Purchase Agreement, $25.0 million was used to repurchase 1,451,800 shares of common stock, and $25.6 million was used for capped call transactions.
- Agreement Termination: The offering enabled the full termination of the September 2022 revenue interest purchase agreement with OrbiMed, which had entitled OrbiMed to a percentage of the company's GAAP revenue.