NEW YORK ─ Guardant Health said on Monday that it has priced a $1 billion private offering of 0 percent senior notes due in 2027, with an initial conversion rate of 7.1523 shares of common stock per $1,000 principal amount of notes — an initial conversion price of approximately $139.82 per share of common stock.
According to the company, this rate and conversion price will be subject to adjustment when certain events occur.
The initial purchasers have the option to buy additional notes up to a principal amount of $150,000,000 within a period of 13 days from the date the notes are first issued.
Guardant estimated its net proceeds will be approximately $984.3 million, or $1.13 billion if the initial buyers fully exercise their option.
The liquid biopsy firm intends to use $78.3 million of the net proceeds to fund the cost of entering into privately negotiated capped call transactions with one or more of the initial purchasers, respective affiliates, or other financial institutions. The remainder will support general corporate purposes and working capital.
The sale is scheduled to close on Nov. 19.