Revolution Medicines Raises $2.225B Through $142 Stock Sale and 0.5% Convertible Notes
Revolution Medicines closed upsized offerings of 12,147,887 common shares at $142 each and $500 million of 0.50% convertible notes due 2033, generating $2.225 billion gross and $2.137 billion net proceeds. Net proceeds will fund R&D, potential product commercialization, general corporate expenses and capital expenditures.
1. Closing of Upsized Equity and Note Offerings
Revolution Medicines sold 12,147,887 common shares at $142.00 per share, including 1,584,506 shares from full exercise of the underwriters’ option, and issued $500 million of 0.50% convertible senior notes due 2033. The combined gross proceeds totaled approximately $2.225 billion, before underwriting discounts and expenses.
2. Convertible Senior Notes Terms
The notes accrue interest at 0.50% per annum, payable semi-annually, and mature on May 1, 2033. Initial conversion rate is 5.0302 shares per $1,000 principal (approximate conversion price of $198.80, 40% premium to the equity offering price), adjustable upon certain events. Notes are redeemable at the company’s option after May 6, 2030, if share price exceeds 130% of the conversion price.
3. Use of Net Proceeds and Strategic Outlook
After deducting underwriting discounts, commissions and offering expenses, net proceeds of about $2.1372 billion will support late-stage clinical development, potential commercialization of lead oncology candidates, general corporate and administrative costs, and capital expenditures, strengthening the company’s cash runway into key milestones.