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Exact Sciences Nets $671M in Senior Notes Offering

NEW YORK (GenomeWeb) – Exact Science said in a document filed yesterday with the US Securities and Exchange Commission that it has raised $671.3 million in a previously announced senior notes offering.

Exact entered into an agreement with underwriter Merrill Lynch to sell $600 million in 1 percent convertible senior notes due 2025, and granted the underwriter an option to purchase up to an additional $90 million in notes, which it exercised in full.

The offering closed on Jan. 17, and Exact said that net proceeds from the sale will be approximately $671.3 million after underwriting discounts, commissions, and estimated offering expenses.

The notes will mature on Jan. 15, 2025, unless earlier converted or repurchased. The notes bear interest at a rate of 1.0 percent per year, payable semi-annually in arrears on Jan. 15 and July 15 of each year, beginning on July 15, 2018.

Exact said that it intends to use the net proceeds for general corporate and working capital purposes.

In December Exact inked $15 million revolving and $25.6 million non-revolving loan agreements with MB Financial Bank in order to finance the construction of a clinical laboratory and related facilities, and to conduct additional development of a 46-acre campus in Madison, Wisconsin. The firm also agreed in June to sell 7 million shares of its common stock at $35 per share in an underwritten public offering, with the intention of using the proceeds to fund the expansion of commercialization activities for its colon cancer test, Cologuard.

Shares of the company dropped sharply yesterday as investors considered a newly released study abstract that presented data suggesting a new liquid biopsy test from Taiwanese firm CellMax Life could rival the performance of Cologuard.

In early Thursday trading on Nasdaq, Exact's shares were up approximately 3 percent at $49.23.