CRISPR Therapeutics AG (NASDAQ:CRSP) shares declined 6.75% on Tuesday after the company revealed plans to raise $350 million through a convertible senior notes offering.
The gene-editing firm said it plans to issue convertible senior notes due in 2031 through a private placement aimed at qualified institutional buyers under Rule 144A of the Securities Act. The company also expects to grant the initial purchasers the option to buy up to an additional $52.5 million in notes.
The securities will be senior unsecured obligations of the company and will accrue interest, payable twice a year in arrears on March 1 and September 1, starting on September 1, 2026. The notes are scheduled to mature on March 1, 2031, unless they are converted, redeemed or repurchased before that date.
If the notes are converted, CRISPR Therapeutics will issue common shares with a nominal value of CHF 0.03 per share. The final interest rate, initial conversion rate and other key terms will be determined when the offering is priced.
The company said it plans to use the net proceeds from the offering for general corporate purposes, though it did not provide further details on how the funds will be allocated.