Novavax, Inc. (NASDAQ:NVAX) declared that the initial buyers have used some of the prior announced over-allotment of shares for additional purchase of $25 million worth Senior Convertible Notes. This is part of the initial offering of the 3.75% Senior Convertible Notes that the company planned for 2023.
The sale took place on February 5, 2016, and the company issued an amount of $325 million for the Notes owed for 2023. The initial buyer also has an option of buying additional notes to the tune of $5 million till February 24, 2016, under the past terms and conditions. The purchases constituted those who complied under the amended Rule 144A of the 1933 Securities Act. The purchase was managed by Citigroup and J.P Morgan.
Earnings Per Share
From the Additional Notes offered by the company, $2.9 million were used for the cost of transactions involved in the additional cap that was involved with the option of over-allotment of shares. For the capped transactions, the per share price would be $9.73 at a 75% premium as compared the sale price of common stock at $5.56 for a share when the pricing of the Notes was done on January 25, 2016.
Novavax, Inc. is into the delivery of innovative medications to deal with infectious diseases and the recombinant nanoparticles and Matrix-M™ technology developed by the company have been major breakthroughs in the medical world. They have led to the creation of vaccines that comply with global safety norms and currently the company is into the development of vaccines for pandemic diseases.
As per a Zacks Investment Research report, the earnings per share (EPS) for FY20 were released from the company by FBR & Co. Analyst V. Bernardino estimated an EPS of $0.72 per share in 2020 with the stock rating of Outperform. Meanwhile, Zacks estimated a Buy rating for the company from the previous hold at an EPS of $5.75.
Meanwhile, other analysts posted a Buy or Outperform rating with an average of $14.09 EPS as in December 2015. Overall, one analyst has estimated a rating of hold while a buy rating has been estimated by eight analysts.