Moderna seeks $2 billion in convertibles after cancer vaccine share surge

US biotech major Moderna (Nasdaq: MRNA) plans to raise $2 billion through a private placement of convertible senior notes due 2032, offered to qualified institutional buyers under Rule 144A. Initial purchasers will get a 13-day option to take up to $300 million of additional notes, which would lift the total to $2.3 billion.

The notes will be senior unsecured obligations and will not bear regular interest. On conversion, Moderna can settle in cash, in its own shares, or in a combination of the two, at its election. Final terms, including the initial conversion rate, will be fixed when the offering is priced.