Nuvation Bio has priced an upsized offering of $250 million in convertible senior notes due 2032, up from the previously announced $200 million. The notes carry a 0.75% annual interest rate and are expected to close on June 30, 2026, with net proceeds estimated at approximately $241.2 million. The company plans to use the funds for capped call transaction costs, full repayment of its senior secured loan, and general corporate purposes. Concurrently, Nuvation Bio entered into capped call transactions with an initial cap price of $10.4580, an 80% premium over the last reported sale price. The stock closed Thursday at $5.81, down 10.06%, and fell further to $5.74 in overnight trading.
Nuvation Bio IncPricing of upsized convertible notes offering dilutes existing shareholders and increases debt burden, causing stock to drop 10%.