Novavax, Inc. (NASDAQ: NVAX) has announced a significant refinancing of its convertible debt, with the issuance of $225 million in aggregate principal amount of its 4.625% convertible senior notes due 2031 (the “2031 notes”). This includes approximately $175.3 million principal amount of 2031 notes issued in exchange for approximately $148.7 million principal amount of existing 5.00% convertible senior notes due 2027 (the “2027 notes”), and approximately $49.7 million principal amount of 2031 notes for cash.
The conversion price of the 2031 notes will initially be $11.14 per share of Novavax’s common stock, representing a conversion premium of 27.5% over the closing price of Novavax's common stock on August 20, 2025. Upon the completion of the transactions, which is expected to occur on or about August 27, 2025, approximately $26.5 million in aggregate principal amount of the 2027 notes will remain outstanding with terms unchanged, and the aggregate principal amount of the 2031 notes outstanding will be $225 million.
The 2031 notes extend the debt maturity date to 2031 for the majority of the existing 2027 notes and support improvement to Novavax's capital structure.
This move represents a significant shift in the company's debt profile and provides improved terms for the refinanced debt. It also demonstrates Novavax's ability to attract new investors and effectively manage its debt obligations. Following these announcements, the company's shares moved -11.73%, and are now trading at a price of $7.715. Check out the company's full 8-K submission here.
