WALTHAM, Mass. — Viridian Therapeutics, Inc. priced concurrent upsized public offerings of convertible senior notes and common stock, with expected aggregate gross proceeds of $350 million.
The Waltham biotechnology company said the financing includes $225 million in 1.75% convertible senior notes due 2032 and 7,352,942 shares of common stock priced at $17 per share.
Viridian expects aggregate net proceeds of about $334.7 million after underwriting discounts, commissions and estimated offering expenses. The company said it plans to use the proceeds to repay all outstanding debt under its loan and security agreement with Hercules Capital, fund market expansion studies for its thyroid eye disease franchise, advance research and development of its earlier-stage pipeline, and support working capital and other general corporate purposes.
The offerings are expected to close May 11, subject to customary closing conditions. Viridian said neither offering is contingent on the closing of the other.
The company granted underwriters a 30-day option to purchase up to an additional $25 million in convertible notes and up to an additional 1,102,941 shares of common stock.
The convertible notes will be general, unsecured senior obligations of Viridian and will pay interest semiannually at a rate of 1.75% per year beginning Nov. 15. The notes will mature May 15, 2032, unless earlier converted, redeemed or repurchased.
The initial conversion rate is 40.5680 shares of Viridian common stock per $1,000 principal amount of notes, equal to an initial conversion price of about $24.65 per share. That represents a conversion premium of about 45% above the public offering price of the common stock.
Viridian is developing medicines for autoimmune and rare diseases. Its pipeline includes programs for thyroid eye disease and earlier-stage research and development assets.
