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Viking Therapeutics Prices Upsized $500 Million Offering of Common Stock and Convertible Senior Notes

VKTX
  • Viking Therapeutics priced a concurrent public offering of 7,857,143 common stock shares at $35.00 per share & $225.0 million of 2.00% convertible senior notes due 2032.
  • The offering size increased from the previously announced $200.0 million for each component to the final amounts.
  • Settlement for both the common stock & notes is scheduled for September 25, 2026, subject to customary closing conditions.
  • Underwriters received a 30-day option to purchase up to 1,178,571 additional common stock shares & $33.75 million in additional notes to cover over-allotments.
  • Completion of the common stock offering is not contingent on the completion of the note offering, & vice versa.
  • Joint book-running managers for the note offering are Morgan Stanley, J.P. Morgan, Jefferies, Leerink Partners & William Blair.
  • Joint book-running managers for the common stock offering include the note offering managers plus Raymond James.
  • Oppenheimer & Co. acts as lead manager for the common stock offering, with Canaccord Genuity, H.C. Wainwright & Co., B. Riley Securities, Maxim Group LLC & Laidlaw & Company (U.K.) Ltd. as co-managers.
  • The notes accrue interest at 2.00% per annum, payable semi-annually on April 15 & October 15, beginning April 15, 2027.
  • Notes mature on October 15, 2032, with conversion rights restricted before July 15, 2032, but available thereafter at the noteholders' election.
  • Viking will settle conversions via cash, shares, or a combination at its election, with an initial conversion rate of 19.7044 shares per $1,000 principal.
  • The initial conversion price is approximately $50.75 per share, representing a 45% premium over the public offering price.
  • Viking may redeem the notes for cash at its option on or after October 22, 2029, if the common stock price exceeds 130% of the conversion price for a specified period.
  • Notes are also redeemable in whole if the outstanding principal falls below 15% of the aggregate issued amount.
  • A "fundamental change" allows noteholders to require Viking to repurchase their notes for cash plus accrued interest.
  • Estimated net proceeds are approximately $258.2 million from the common stock offering ($297.0 million if options are fully exercised).
  • Estimated net proceeds are approximately $218.0 million from the note offering ($250.8 million if options are fully exercised).
  • Net proceeds will fund the clinical development & commercialization of the VK2735 & VK3019 programs, plus general research, working capital & corporate purposes.
  • The offerings are conducted pursuant to an effective shelf registration statement filed with the SEC.