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Pacific Biosciences to Obtain $900M Investment From SoftBank Subsidiary

NEW YORK – Pacific Biosciences said on Wednesday that it will receive a $900 million strategic investment from SB Management, a subsidiary of SoftBank Group of Japan, through the sale of convertible senior notes.

PacBio plans to use the funding to support unspecified future growth initiatives. "[T]his financing will enable us to continue to expand our product portfolio and advance our commercial expansion as we seek to transform the field of genomics," said PacBio CEO and President Christian Henry in a statement.

"We believe that PacBio's HiFi sequencing will be the de facto standard tool for population genomics fundamentally altering the practice of healthcare," said Akshay Naheta, CEO of SB Management.

Under the terms of the deal, SB Management will purchase a total aggregate principal amount of $900 million in convertible senior notes due 2028. The notes will have an initial conversion price of $43.50 per share of PacBio's common stock, which represents a 10 percent premium over the firm's closing price on Feb. 9 and a 30 percent premium over its 30-day average closing price. The notes will mature Feb. 15, 2028 and bear 1.5 percent interest per year. Upon conversion, the company will have the right to settle in cash, shares, or a combination of the two.

Later on Wednesday, PacBio will release its fourth quarter and 2020 financial results, which it said remain largely consistent with its prelease last month.

In morning trading on the Nasdaq, PacBio's shares were up 17 percent at $46.30.