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Fluidigm to Issue $50M of Convertible Senior Notes

This article has been updated to reflect the final pricing of Fluidign's offering.

NEW YORK – Fluidigm said today that it plans to offer $50 million of convertible senior notes due 2024 in a private placement to qualified institutional buyers. The South San Francisco, California-based firm also expects to grant initial purchasers a 13-day option to purchase up to an additional $5 million aggregate principal amount of the notes. 

Holders of the notes may convert their notes into shares of Fluidigm's common stock at their option on any day prior to and including the second scheduled trading day prior to the maturity date. 

Fluidigm intends to use the net proceeds, together with cash on hand, to repurchase up to about $50 million aggregate principal amount of its 2.75 percent senior convertible notes due 2034 in negotiated transactions with investors concurrently with the offering. 

Fluidigm will use any remaining proceeds for working capital and general corporate purposes, including capital expenditures, the repurchase or other retirement of any remaining 2014 notes, potential acquisitions, and strategic transactions. 

Fluidigm estimates the net proceeds from the offering will be about $47.8 million (or $52.6 million if the initial purchasers exercise their option to purchase additional notes in full). 

The notes will be senior unsecured obligations of Fluidigm and will accrue interest payable semiannually in arrears at a rate of 5.25 percent per year. The notes will mature on Dec. 1, 2024, unless earlier converted or repurchased, and will have an initial conversion price of about $2.90 per share of common stock. 

Between Dec. 1, 2021 and Dec. 1, 2022, and between Dec. 1, 2022 and Dec. 1, 2024, when the notes mature, Fluidigm may convert all of the notes at its option under certain conditions.  

Fluidigm said earlier this month that it had finished Q3 with cash and cash equivalents of $25.9 million. 

Fluidigm's shares were down less than 1 percent at $2.32 in morning trading on the Nasdaq.