NEW YORK – Invitae is selling $300 million in convertible senior notes in a private offering.
The company increased the offering size from the previously announced $200 million and granted initial purchasers of the notes a 13-day option to purchase an additional $50 million worth of notes under the same terms and conditions. Invitae is expecting net proceeds of $291.2 million or $339.8 million if purchasers exercise the option to buy additional notes.
The sale is slated to close on Sept. 10.
The company said it will use the proceeds to repay the $75 million outstanding under its 2018 Note Purchase Agreement, to fund its international expansion, to build infrastructure, for working capital, and for other corporate expenses. The proceeds could also be used to purchase other companies or technologies.
The notes will pay interest semi-annually on March 1 and Sept. 1 of each year starting on March 1, 2020, at a rate of 2.00 percent per year. The notes will mature on Sept. 1, 2024, unless they are converted, redeemed, or repurchased earlier. The notes can be convertible only under certain circumstances before March 1, 2024.
Invitae also has the option, under certain circumstances, to redeem all or any portion of the notes on or after Sept. 6, 2022.