Wednesday, February 10, 2021
MENLO PARK, Calif., Feb. 10, 2021 (GLOBE NEWSWIRE) — Pacific Biosciences of California, Inc. (NASDAQ: PACB) (the “Company”), a leading provider of high-quality, long-read sequencing platforms, today announced that SB Management, a subsidiary of Softbank Group Corp., will make an investment of $900 million in convertible senior notes to support the Company’s future growth initiatives.
“This strategic investment by SoftBank validates our leadership position in the long-read DNA sequencing market and enables us to further accelerate our growth strategies”, said Christian Henry, President and Chief Executive Officer of Pacific Biosciences. “Currently, we offer one of the most accurate and complete sequencing solutions on the market and this financing will enable us to continue to expand our product portfolio and advance our commercial expansion as we seek to transform the field of genomics.”
“We believe that PacBio’s HiFi sequencing will be the de facto standard tool for population genomics fundamentally altering the practice of healthcare,” said Akshay Naheta, Chief Executive Officer, SB Management. “Christian has assembled a world-class management team to commercialize market-leading sequencing technologies and to prepare population-scale healthcare systems for a future in precision medicine. We look forward to partnering with the Company in its efforts to build the most advanced genome sequencing platform in the world.”
Under the terms of the investment, SB Management will purchase a total aggregate principal amount of $900 million in Convertible Senior Notes due 2028 (the “Notes”). The Notes will have an initial conversion price of $43.50 per share of the Company’s common stock, subject to customary anti-dilution and other adjustments. The initial conversion price of $43.50 represents a 10% premium to the Company’s closing price on February 9, 2021 and a 30% premium to the Company’s average 30-day trailing closing price. The Notes will mature on February 15, 2028, unless earlier repurchased, redeemed or converted. The Notes bear 1.5% interest per year. Upon conversion, the Company will have the right to elect settlement in cash, shares, or any combination thereof in its sole discretion.
Additional information regarding this announcement may be found in a Current Report on Form 8-K that the Company intends to file today with the U.S. Securities and Exchange Commission.