(RTTNews) - Celcuity Inc. (CELC), a clinical-stage biotechnology company, on Wednesday announced the pricing of its upsized underwritten public offering.
The company is offering $500 million in an aggregate principal amount of convertible senior notes due 2032, increased from the previously announced $400 million in aggregate principal amount.
Net proceeds are estimated at $484.3 million, or $557 million if the underwriters exercise their option in full. The company plans to use the proceeds to repay outstanding amounts due under loan agreements, for general corporate purposes, and for the acquisition of businesses, products, or technology.
The offering is expected to close on June 8, 2026.
The convertible notes are expected to accrue 0.250% per year in interest payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2027. The notes are convertible based on an initial conversion rate of 8.0302 shares of the company's common stock per $1,000 principal amount of the convertible notes, equivalent to a conversion price of $124.53 per share of common stock.
Additionally, the company is offering underwriters a 30-day option to purchase up to $75 million in aggregate principal amount of convertible notes to cover over-allotments.
The convertible notes are set to mature on August 1, 2032, and are redeemable on or after August 6, 2029.
Jefferies, J.P. Morgan, TD Cowen and Guggenheim Securities are acting as joint book-running managers for the offering.
CELC closed Wednesday at $88.95, down 2.70%. In the overnight market, the stock is trading at $87.20, down 1.97%.
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