Novavax refinances debt with $225 million convertible notes due 2031

GAITHERSBURG, Md. - Novavax, Inc. (NASDAQ:NVAX), currently valued at $1.4 billion in market capitalization, has entered into agreements to issue $225 million in convertible senior notes due 2031, the company announced Thursday. The transaction includes approximately $175.3 million in notes issued in exchange for existing convertible notes due 2027, and approximately $49.7 million in new notes sold for cash. According to InvestingPro data, the company maintains a healthy liquidity position with a current ratio of 2.36x, indicating strong ability to meet short-term obligations.

The 4.625% convertible senior notes due 2031 will have an initial conversion price of $11.14 per share, representing a 27.5% premium over Novavax’s closing stock price on August 20. The transaction is expected to close around August 27, 2025. The stock has shown significant volatility, trading between $5.01 and $15.22 over the past 52 weeks.

Following completion of the refinancing, approximately $26.5 million of the original 2027 notes will remain outstanding with unchanged terms.

The refinancing extends the maturity date for the majority of Novavax’s existing debt from 2027 to 2031 and improves the company’s capital structure. The interest rate on the new notes (4.625%) is lower than the 5.00% rate on the 2027 notes being exchanged.

The 2031 notes have not been registered under the Securities Act of 1933 and cannot be offered or sold in the U.S. without registration or an applicable exemption.

Novavax focuses on developing vaccines using protein-based nanoparticle technology and its Matrix-M adjuvant. The company’s strategy includes optimizing existing partnerships, expanding its technology applications, and forming new collaborations.

The information in this article is based on a company press release statement.

In other recent news, Novavax Inc. reported an unexpected profit in its Q2 2025 earnings report. The company posted a net income of $107 million, or $0.62 per diluted share, defying analyst expectations of a loss of $0.06 per share. Revenue for the quarter reached $239 million, significantly exceeding the forecasted $156.23 million. This earnings surprise has drawn attention from investors and analysts alike. The company’s financial performance was a notable highlight, marking a positive turn for Novavax. There were no recent reports of mergers or acquisitions involving the company. Analyst upgrades or downgrades were not mentioned in the recent news. Novavax’s earnings results have become a focal point of discussion among market participants. These developments reflect the company’s current financial standing and market perception.

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