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Exact Sciences Launches $190M Senior Notes Offering

NEW YORK (GenomeWeb) – Exact Sciences announced before the opening of the market on Friday that it is offering $190 million in aggregate principal amount of its 1.0 percent convertible senior notes due 2025. The firm said it expects the offering to provide gross proceeds of $202.4 million.

Exact upsized the offering Friday after originally announcing a $150 million offering after the close of the market on Thursday. The initial public offering price for the Notes will be 106.5 percent of face value plus accrued interest from Jan. 17.

The company said it plans to use the net proceeds for general corporate purposes, including for working capital and possible acquisitions.

Interest on the notes will be paid semi-annually on Jan. 15 and July 15 each year beginning July 15, 2018. The initial conversion rate is 13.2569 shares of Exact Sciences' common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $75.43 per share. The notes mature on Jan. 15, 2025.

Exact plans to grant to the underwriters a 30-day option to purchase up to an additional $28.5 million aggregate principal amount of the notes at the public offering price, less the underwriting discount, plus accrued interest. It also said that the issuance of the notes is a reopening of, and will be part of the same series as, the $690 million aggregate principal amount of 1.0 percent convertible senior notes due 2025 it issued on Jan. 17. The company said it raised $671.3 million in that offering.

BofA Merrill Lynch is acting as sole book-running manager for the offering. The offering is expected to close on June 12.

Exact's shares fell about 2 percent to $61.84 in Friday morning trading on the Nasdaq.