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Novavax Announces Convertible Debt Refinancing Refinancing extends maturity of most existing debt with improved terms $225 million of convertible notes due in 2031 issued, including a ~$175 million exchange

Key Takeaway: Novavax, Inc. has announced a refinancing of its convertible debt, extending the maturity of a significant portion of its existing 5.00% Convertible Senior Notes from 2027 to new 4.625% Convertible Senior Notes due in 2031. The transaction includes issuing $225 million in notes, with a substantial part converted from existing notes and a cash subscription component. This refinancing is aimed at strengthening the company's capital structure, with a conversion price set at a premium over current stock prices. The completion of these transactions is anticipated to improve the company's financial flexibility ahead.

Market Sentiment Analysis

POSITIVE FACTORS

  • Refinancing extends maturity of the majority of existing debt.
  • Improved terms with a lower interest rate for new convertible notes.
  • Strengthens Novavax's capital structure and financial position.

CONCERNS & RISKS

  • Only a portion of the existing debt will remain outstanding.
  • The company faces inherent risks and uncertainties regarding execution of transactions.

Full Press Release Details

Convertible Debt Refinancing
Md., August 21, 2025 - Novavax, Inc. (Nasdaq: NVAX)
today announced that it has entered into privately negotiated agreements with certain of the holders of its existing 5.00% Convertible
Senior Notes due 2027 (the "2027 Notes") and new investors, pursuant to which the Company will issue $225 million aggregate
principal amount of its 4.625% Convertible Senior Notes due 2031 (the "2031 Notes") consisting of (i) approximately $175.3
million principal amount of 2031 Notes issued in exchange for approximately $148.7 million principal amount of 2027 Notes (the "Exchange
Transactions"), and (ii) approximately $49.7 million principal amount of 2031 Notes for cash (the "Subscription Transactions"
and, together with the Exchange Transactions, the "Transactions").
The conversion price of the 2031 Notes will initially
be $11.14 per share of Novavax's common stock, which represents a conversion premium of 27.5% over the closing price of Novavax's
common stock on August 20, 2025. Upon the completion of the Transactions, which is expected to occur on or about August 27, 2025, approximately
$26.5 million in aggregate principal amount of the 2027 Notes will remain outstanding with terms unchanged, and the aggregate principal
amount of the 2031 Notes outstanding will be $225 million.
The 2031 Notes extend debt maturity date to 2031
for the majority of the existing 2027 Notes and supports improvement to the Novavax capital structure.
Neither the 2031 Notes, nor any shares of the
Company's common stock issuable upon conversion of the 2031 Notes, have been registered under the Securities Act of 1933, as amended (the
"Securities Act"), or any state securities laws, and unless so registered, may not be offered or sold in the United States
absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities
Act and other applicable securities laws.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy the 2031 Notes, the Company's common stock potentially issuable upon conversion of the 2031
Notes or any other securities, and will not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful.
Novavax, Inc. (Nasdaq: NVAX) tackles some of the world's
most pressing health challenges with its scientific expertise in vaccines and its proven technology platform, including protein-based
nanoparticles and its Matrix-M adjuvant. The Company's growth strategy seeks to optimize its existing partnerships and expand access
to its proven technology platform via R&D innovation, organic portfolio expansion in infectious disease and beyond, and forging new
partnerships and collaborations with other companies. Please visit novavax.com and LinkedIn for more information
Forward-Looking Statements
This press release contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Any
statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may,"
"will," "should," "estimates," "predicts," "potential," "continue," "strategy,"
"believes," "anticipates," "plans," "expects," "intends" and similar expressions are
intended to identify forward-looking statements. These forward-looking statements include but are not limited to the Company's ability
to close the foregoing transactions on the timeline described, with the terms anticipated, or at all. Actual results could differ materially
from those projected in forward-looking statements depending on a variety of factors. These include that the closing of the transactions
is subject to closing conditions. For a discussion of such risks and uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see "Risk Factors" in the Company's reports on Forms 10-K and 10-Q, as well as
other reports that Novavax files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified
in their entirety by this cautionary statement, and Novavax undertakes no obligation to update publicly any forward-looking statement
for any reason, except as required by law, even as new information becomes available or other events occur in the future.

Frequently Asked Questions

What is the total amount of 2031 Notes Novavax will issue?

Novavax will issue a total of $225 million in 2031 Notes.

What is the conversion price for the 2031 Notes?

The conversion price for the 2031 Notes is $11.14 per share.

When are the 2031 Notes expected to mature?

The 2031 Notes are expected to mature in 2031.

Can the 2031 Notes be sold without registration?

No, the 2031 Notes cannot be sold without registration or an exemption.

What will happen to the outstanding 2027 Notes?

Approximately $26.5 million of the 2027 Notes will remain outstanding.

Last updated: Aug 20, 2025