Avid Bioservices Shares Slide After Pricing Private Placement of Convertible Notes

By Mary de Wet

Avid Bioservices shares fell about 39% in premarket trade Thursday after the company priced a private placement of convertible notes.

The stock recently traded at $5.33 and was down about 41% over 52 weeks as of Wednesday's close.

The $160 million of 7% senior notes due 2029 can be converted into 101.1250 shares of Avid Biosciences' common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of about $9.89 a share, the biologics contract development and manufacturing organization said.

The conversion price is an almost 13% premium to Wednesday's closing price of $8.79.

Avid Bioservices plans to use the proceeds to pay down 1.250% exchangeable senior notes due 2026.

Write to Mary de Wet at [e-mail]

(END) Dow Jones Newswires

03-07-24 0756ET