Novavax shares plunged 20% after proposed $125 million public offering of common stock.
J.P. Morgan, Jefferies and Cowen are acting as joint book-running managers and representatives of the underwriters for the common stock offering.
Concurrently with the offering of common stock, Novavax also announced an offering of$125 millionaggregate principal amount of convertible senior notes due 2027 (the "notes") to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In connection with the notes offering, Novavax expects to grant to the initial purchasers a 30-day option to purchase up to an additional$18.75 millionaggregate principal amount of the notes. The common stock offering is not contingent upon the consummation of the concurrent offering of the notes, and the concurrent offering of the notes is not contingent upon the consummation of the common stock offering.
Novavax may use the net proceeds from the common stock offering and, if consummated, the concurrent offering of the notes, for general corporate purposes, including but not limited to the continued global commercial launch of Nuvaxovid, repayment or repurchase of a portion of the$325 millionin outstanding principal amount of our 3.75% convertible senior unsecured notes dueFebruary 1, 2023, working capital, capital expenditures, research and development expenditures, clinical trial expenditures, repayments under our supply agreements, as well as acquisitions and other strategic purposes.