Vaxcyte Prices Stock, Warrants and $500M Note Offering
Vaxcyte is raising capital through concurrent public offerings of common stock, pre-funded warrants, and $500M in convertible notes due 2032.
Vaxcyte, Inc., a clinical-stage vaccine company trading on Nasdaq under the ticker PCVX, announced Monday the pricing of three simultaneous public capital raises, including common stock, pre-funded warrants, and a $500 million convertible senior note offering.
The San Carlos, California-based company is selling 7,412,500 shares of common stock at $64.00 per share alongside pre-funded warrants for 400,000 additional shares priced at $63.999 each. The warrants carry a nominal exercise price of $0.001 per share, a structure typically used to allow institutional investors to acquire equity while sidestepping certain ownership thresholds.
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The $500 million in convertible senior notes carry a 1.50% interest rate and mature in 2032. Underwriters have been granted a 30-day overallotment option to purchase up to an additional $75 million in notes, potentially lifting total note proceeds to $575 million if fully exercised.
On the equity side, underwriters also hold a 30-day option to buy up to 1,171,875 additional shares at the $64.00 offering price. If both overallotment options are exercised in full, the combined capital raise would exceed $1 billion, underscoring the scale of Vaxcyte's funding ambitions as it advances its vaccine pipeline through clinical development.
Concurrent multi-tranche capital raises of this magnitude are typically employed by clinical-stage biotechs seeking runway to fund late-stage trials without immediate dilution pressure from a single equity offering. Continue reading at GlobeNewswire - Mergers And Acquisitions.
