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NeoGenomics Aims to Raise $300M Through Common Stock, Senior Notes Offerings

NEW YORK – NeoGenomics announced Thursday the pricing of its proposed offerings of shares of common stock and convertible senior notes.

The company is offering 4.4 million shares of its common stock at $28.50 per share, with expected gross proceeds of $125.4 million, and $175 million of its 1.25 percent convertible senior notes due in 2025. The senior notes will mature on May 1, 2025. 

NeoGenomics also granted the underwriters of the offerings a 30-day option to buy an additional 666,000 shares of common stock at the public offering price and $26.25 million of senior notes.

For the common stock offering, the underwriters are also offering approximately 1,065,000 shares of common stock borrowed from third parties. They will use the resulting short position to facilitate hedging transactions by some of the purchasers of the senior notes, the company said.

Fort Myers, Florida-based NeoGenomics said it will use the proceeds for general corporate purposes and to repay borrowings under its term loan facility. It may also use some of the proceeds for acquisitions or investments. 

Morgan Stanley, BofA Securities, and SVB Leerink represented the underwriters and book-running managers for the offerings, which are expected to close on May 4. William Blair, Craig-Hallum Capital Group, Needham & Company, and Raymond James were co-managers for the offerings.

In morning trading on the Nasdaq, NeoGenomics' shares were down 10 percent to $27.98.