Ocugen closes $130M 6.75% convertible notes sale, extends runway to 2028
Ocugen raised $130 million via 6.75% convertible senior notes due 2034, including $15 million overallotment, yielding $112.6 million net proceeds. It allocated $32.7 million to repay its Avenue Capital loan and will use the balance for corporate purposes, extending its cash runway into 2028 to advance three late-stage gene therapy programs toward BLA filings.
1. Financing Through Convertible Senior Notes
Ocugen closed a private offering of $130.0 million principal amount of 6.75% convertible senior notes due 2034, including full exercise of a $15.0 million overallotment option, at 90% of principal. The offering generated approximately $112.6 million in net proceeds after discounts and estimated expenses.
2. Allocation of Net Proceeds
The company used $32.7 million of net proceeds to fully repay the outstanding principal and accrued interest under its loan agreement with Avenue Capital affiliates, including related prepayment fees and expenses. The balance of proceeds is reserved for general corporate purposes.
3. Extended Runway and Pipeline Plans
This financing extends Ocugen's cash runway into 2028, supporting advancement of its three late-stage gene therapy programs targeting inherited retinal and age-related blindness diseases. Management plans to file three biologics license applications by 2028 to potentially bring new treatments to patients.