(RTTNews) - PTC Therapeutics, Inc. (PTCT) announced the pricing of a $500 million offering of convertible senior notes due 2031 in a Rule 144A private placement to qualified institutional buyers. The notes carry an initial conversion price of approximately $107.48 per share, representing a conversion rate of 9.3042 shares per $1,000 principal amount.
Net proceeds from the offering will be approximately $486.8 million or approximately $535.5 million if the over-allotment option is exercised. Concurrently with the pricing of the offering, the company entered into privately negotiated transactions with certain holders of its 1.5% convertible senior notes due 2026 to repurchase, in cash, approximately $328.8 million and, in the aggregate, $222.0 million of the outstanding notes' principal on terms agreed with each holder.
The company expects to use approximately $328.8 million of the net proceeds to repurchase for cash $222.0 million of its 1.5% notes due 2026, with the remainder allocated to general corporate purposes, including potential additional repurchases. The sale of the notes is expected to close on June 18, 2026 and mature on June 15, 2031.
PTC also granted the initial purchasers an option to purchase, within the 13-day period, up to an additional $50.0 million aggregate principal amount of notes from PTC.
PTC Therapeutics focuses on developing medicines for children and adults living with rare disorders.
PTCT has traded between $43.17 and $87.50 over the last year. The stock closed Monday's trade at $76.77, up 2.17%.
For More Such Biotech Stock News, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
