Nuvation Bio Inc. has completed its registered public offering of $250.0 million in aggregate principal amount of 0.75% Convertible Senior Notes maturing on July 1, 2032. The company received estimated net proceeds of approximately $241.2 million, a portion of which was used to repay approximately $58.5 million in outstanding debt under a previous credit agreement and to fund capped call transactions intended to reduce potential shareholder dilution. The remaining proceeds will be used for general corporate purposes.
Key Details
- Offering Size: $250.0 million aggregate principal amount, with a 30-day underwriter option to purchase up to an additional $37.5 million.
- Note Terms: The notes bear an interest rate of 0.75% per year and mature on July 1, 2032. The initial conversion price is approximately $7.84 per share, a 35.0% premium over the stock's closing price on June 25, 2026.
- Use of Proceeds: Net proceeds of approximately $241.2 million were used to (i) pay $14.9 million for capped call transactions, (ii) repay all obligations (~$58.5 million) under its March 2025 Credit and Guaranty Agreement, with the remainder for general corporate purposes.
- Related Transactions: The company terminated its Credit Agreement dated March 3, 2025, upon full repayment. It also entered into capped call transactions to offset potential dilution from the conversion of the notes, with a cap price of $10.4580 per share.