Moderna Borrows $2 Billion for Oncology Expansion

Moderna's stock fell on Thursday after the company announced it would issue $2 billion in convertible senior notes due in 2032. The net proceeds from this private placement will be used to expand Moderna's oncology operations, pay down debt, and fund capped call transactions.

The company plans to channel the funds towards its growth in cancer treatments following positive results from a Phase 3 trial with Merck & Co Inc. earlier in August. The $2 billion offering includes an option for initial purchasers to acquire up to an additional $300 million in notes within a 13-day window.

The securities will function as general senior unsecured obligations, but they won't carry regular interest or have their principal amount accrete over time. Upon conversion, Moderna retains the right to settle the notes using cash, shares of its common stock, or a combination of both options.