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Cytokinetics Announces Proposed Private Placement of $550.0 Million of Convertible Senior Notes
CytokineticsCytokinetics(US:CYTK) Globenewswireยท2025-09-16 20:02

Core Viewpoint - Cytokinetics plans to offer $550 million in convertible senior notes due 2031, with an option for an additional $82.5 million, to support its business initiatives and potential commercial launch of aficamten [1][3]. Group 1: Offering Details - The offering consists of $550 million aggregate principal amount of convertible senior notes due 2031, intended for qualified institutional buyers [1]. - The notes will be senior, unsecured obligations, maturing on October 1, 2031, and will accrue interest payable semi-annually [2]. - Noteholders can convert their notes under certain conditions, with settlement options including cash, shares of common stock, or a combination [2]. Group 2: Use of Proceeds - A portion of the net proceeds will be used to pay cash consideration in note exchange transactions [3]. - Remaining proceeds will support the commercial launch of aficamten, expand its development program, advance its research pipeline, and cover general corporate purposes [3]. Group 3: Note Exchange Transactions - Cytokinetics plans to issue shares of common stock in exchange for a portion of its outstanding 3.50% convertible senior notes due 2027 in privately negotiated transactions [4]. - The terms of these note exchange transactions will depend on various factors, including market prices [4]. - There is no assurance on the amount or terms of the 2027 notes that will be exchanged [4]. Group 4: Market Activity Impact - Holders of the 2027 notes who hedge their equity price risk may unwind their positions by purchasing Cytokinetics' common stock, potentially affecting the market price [5]. - This activity could lead to a higher effective conversion price for the notes, although the magnitude of such market activity is unpredictable [5]. Group 5: Company Overview - Cytokinetics is a specialty cardiovascular biopharmaceutical company focused on developing new medicines for cardiac muscle dysfunction [8]. - The company is preparing for potential regulatory approvals and commercialization of aficamten, following positive Phase 3 trial results [9]. - Other developments include omecamtiv mecarbil for heart failure and ulacamten for heart failure with preserved ejection fraction [9].