Ocugen Inc. (NASDAQ: OCGN) announced plans to offer $115 million in convertible senior notes due 2034 through a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

The biotechnology company also intends to grant initial purchasers a 13-day option to buy an additional $15 million in notes. The offering remains subject to market conditions and other factors, with no assurance regarding completion, timing, size or final terms.

Ocugen plans to use approximately $32.7 million of net proceeds to fully repay outstanding principal and accrued interest on its existing loan with affiliates of Avenue Capital Group, including prepayment fees and related expenses. The remaining proceeds will fund general corporate purposes.

The convertible notes will be unsecured obligations ranking senior to future subordinated debt, equal to existing unsubordinated liabilities, and junior to secured debt. Interest will be paid semi-annually, and notes may be converted into cash, common stock, or a combination at Ocugen's discretion.

The company specializes in gene therapies for blindness diseases. The securities will only be available to qualified institutional buyers and have not been registered under federal securities laws.

Terms including interest rate and conversion rate will be determined at pricing. The announcement does not constitute an offer to sell or solicitation to buy securities.