On February 10, 2021, Pacific Biosciences, a leading provider of high-quality, long-read sequencing platforms, announced that SB Management, a subsidiary of Softbank Group Corp., will make an investment of $900 million in convertible senior notes to support the company’s future growth initiatives.

Under the terms of the investment, SB Management will purchase a total aggregate principal amount of $900 million in convertible senior notes due 2028. The notes will have an initial conversion price of $43.50 per share of the company’s common stock, subject to customary anti-dilution and other adjustments. The initial conversion price of $43.50 represents a 10 percent premium to the company’s closing price on February 9, 2021, and a 30 percent premium to the company’s average 30-day trailing closing price. The notes will mature on February 15, 2028, unless earlier repurchased, redeemed, or converted. The notes bear 1.5 percent interest per year. Upon conversion, the company will have the right to elect settlement in cash, shares, or any combination thereof in its sole discretion.

Pacific Biosciences’ innovative instruments are based on Single Molecule, Real-Time (SMRT®) Sequencing technology, which delivers a comprehensive view of genomes, transcriptomes, and epigenomes, enabling access to the full spectrum of genetic variation in any organism. Cited in thousands of peer-reviewed publications, the company’s sequencing systems are in use by scientists around the world to drive discovery in human biomedical research, plant and animal sciences, and microbiology.

The Wilson Sonsini team that advised Pacific Biosciences in the transaction includes:

Corporate
Donna Petkanics
Andrew Hoffman
Jonathan Chan
Emily Chan

CFG
Michael Occhiolini
Alex Weber

For more information, please see Pacific Biosciences' press release. The Wall Street Journal also covered this transaction.