Vaxcyte, Inc. (Nasdaq: PCVX) announced the commencement of two separate underwritten public offerings: $500 million in common stock and pre-funded warrants, and $500 million in convertible senior notes due 2032.

The company has granted underwriters a 30-day option to purchase up to an additional $75 million in common stock and up to $75 million in additional notes to cover over-allotments. The two offerings are independent of each other and are subject to market conditions, with no assurance provided on completion, size, or final terms.

The convertible senior notes will be senior, unsecured obligations maturing on October 15, 2032, with interest paid semi-annually. Vaxcyte may redeem the notes on or after October 22, 2029, provided the company's stock price exceeds 130% of the conversion price for a specified period. The interest rate and initial conversion rate will be set at pricing.

Jefferies, Leerink Partners, BofA Securities, Evercore ISI, Goldman Sachs & Co. LLC, and Guggenheim Securities are serving as joint book-running managers for the equity offering. Jefferies, Leerink Partners, BofA Securities, Goldman Sachs & Co. LLC, and Evercore ISI are joint book-running managers for the note offering.

Vaxcyte said it intends to use proceeds from both offerings to fund clinical development of its VAX-31 pneumococcal vaccine candidate in adult and pediatric programs, manufacturing scale-up and inventory building ahead of a potential U.S. commercial launch, medical affairs and commercial preparations, early-stage pipeline research, and general corporate purposes.

A shelf registration statement for the securities was filed with the Securities and Exchange Commission and became automatically effective on May 24, 2024.