Zenas BioPharma Secures $287.5M Net from $200M Convertible Notes and $100M Equity Offering
Zenas BioPharma priced a dual offering of $200 million 2.50% convertible senior notes due 2032 and 5 million common shares at $20 each, raising net proceeds of approximately $287.5 million. The company granted underwriters 30-day options for up to $30 million additional notes and 750,000 shares, closing March 31.
1. Concurrent Offering Details
Zenas BioPharma launched two underwritten offerings: $200 million aggregate principal of 2.50% convertible senior notes due April 1, 2032, and 5 million common shares at $20 per share. Gross proceeds total $300 million, with expected net proceeds of about $287.5 million after fees, subject to customary closing conditions on March 31.
2. Convertible Notes Terms
The notes accrue 2.50% interest semi-annually and carry an initial conversion rate of 37.7358 shares per $1,000 principal, equivalent to a $26.50 conversion price (32.5% premium over the equity offering price). Zenas may redeem notes from April 8, 2030 if its share price exceeds 130% of the conversion price, and noteholders can convert under specified conditions or require repurchase upon fundamental changes.
3. Use of Proceeds and Pipeline Funding
Zenas intends to deploy net proceeds to support a planned U.S. commercial launch of obexelimab for IgG4-RD (if approved), advance orelabrutinib Phase 3 trials in progressive multiple sclerosis and ZB021 Phase 1/2 studies, and cover working capital and general corporate purposes.