Overview of Offerings#
Viridian Therapeutics Inc., a biotechnology company based in Waltham, Massachusetts, has announced the pricing of two public offerings that together are expected to generate approximately $334.7 million in net proceeds. This comes after a notable 30% increase in the company's stock over the past week, with shares currently trading at $17.53.
Details of the Offerings#
The company priced $225 million in convertible senior notes with a 1.75% interest rate, due in 2032. Additionally, it is offering 7,352,942 shares of common stock at a price of $17.00 per share, which is expected to bring in about $125 million in gross proceeds.
The convertible notes are unsecured, meaning they are not backed by any specific assets. Interest on these notes will be paid twice a year, starting on November 15, 2023. The notes can be converted into shares of the company at a rate of 40.5680 shares for every $1,000 of notes, which translates to a conversion price of approximately $24.65 per share. This price is about 45% higher than the current equity offering price.
Use of Proceeds#
Viridian plans to use the funds raised from these offerings for several purposes, including repaying existing debt, funding market expansion studies for its thyroid eye disease treatments, advancing research and development efforts, and covering general corporate expenses. The company currently has a strong financial position, with more cash than debt.
Closing and Underwriters#
Both offerings are expected to close on May 11, 2023, pending standard closing conditions. Notably, the closings are independent of each other. Jefferies, Leerink Partners, and Goldman Sachs & Co. LLC are acting as joint book-running managers for these offerings.
In addition to these financial activities, Viridian has reported positive results from its Phase 3 clinical trial for elegrobart, a treatment for chronic thyroid eye disease, indicating promising developments in its product pipeline.