NeoGenomics priced a $275 million offering of 0.75% convertible senior notes due 2032, with an option for initial purchasers to buy up to another $41.25 million. The company expects the deal to close on June 22, 2026.
The notes carry an initial conversion rate of 70.6140 shares per $1,000 principal amount, implying an initial conversion price of about $14.16 per share. That is 35% above NeoGenomics’ last reported share price of $10.49 on June 16, 2026.
NeoGenomics said it expects net proceeds of about $266.15 million, or about $306.16 million if the full extra allotment is sold. It plans to spend about $25 million of those proceeds on capped call transactions.
The company also said it will use a portion of the proceeds, along with cash on hand, to repurchase $276 million of its 0.25% convertible senior notes due 2028. Those repurchases are expected to cost about $263.19 million including accrued and unpaid interest.
In addition, NeoGenomics plans to use any remaining net proceeds, together with cash on hand, to buy back up to $25 million of its common stock in privately negotiated transactions.
The capped call transactions were struck with a cap price of $20.98 per share, which is 100% above the June 16 closing price used in the announcement. The company said the notes will pay 0.75% annual interest, with semiannual payments beginning Jan. 1, 2027, and will mature on July 1, 2032. As a result of these announcements, the company's shares have moved 1.05% on the market, and are now trading at a price of $10.60. Check out the company's full 8-K submission here.
