Solazyme Raises Up to $125 Million in New Offering


On Friday, biofuels-from-algae-specialist Solazymeannounced it has priced a $115 million convertible senior debt (termed "Convertible Notes") offering, in order to fund "project related costs and capital expenditures and for general corporate purposes." Net of costs, Solazyme expects to raise $109.8 million from the offering.

In addition to the base amount, Solazyme noted that the private buyer of these Convertible Notes will be granted 30 days to decide whether to purchase an additional $10 million worth. Sale of the Convertible Notes is expected to close on January 24.

Once sold, the Convertible Notes will pay a fixed interest rate of 6%, payable semiannually in arrears on August 1 and February 1 of each year, until repurchased or converted into common stock. The first payment will be made on August 1 of this year. The final payment is expected to take place on February 1, 2018, when the Convertible Notes will mature. Additionally, the holder can convert the Convertible Notes into common stock at a share price of approximately $8.26.

Solazyme shares are up 3.5% on the news, at $7.12.

The article Solazyme Raises Up to $125 Million in New Offering originally appeared on

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