Viking Therapeutics Inc. (NASDAQ: VKTX) announced plans to raise approximately $400 million in a pair of concurrent public offerings consisting of $200 million in common stock and $200 million in convertible senior notes.
Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are expected to serve as book-running managers for the transactions. The company will also grant underwriters a 30-day option to purchase up to an additional $30 million in both the equity and debt tranches to cover over-allotments.
Completion of each offering is independent and not contingent on the other, according to the filing.
The convertible senior notes will be issued as senior, unsecured obligations bearing interest payable semi-annually, maturing on October 15, 2032. Settlement upon conversion — at the company's election — may take the form of cash, common shares, or a combination of both. Interest rate, initial conversion rate, and other terms will be set at pricing.
Viking holds the right to redeem the notes for cash beginning October 22, 2029, if its common stock exceeds 130% of the conversion price for a specified period or if less than 15% of the original principal remains outstanding. Noteholders retain the right to require repurchase at principal plus accrued interest in the event of certain fundamental corporate changes.
Proceeds from the offerings are intended to fund continued clinical development and advancement of the VK2735 and VK3019 programs, as well as general research and development, working capital, and other corporate purposes.
The offerings are being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission.
