PACB - Why Pacific Biosciences of California Stock Is Soaring Today
Shares of gene sequencing specialist Pacific Biosciences of California (NASDAQ: PACB) are trading higher on Wednesday following the company's announcement that it will receive an investment from Softbank Group (OTC: SFTBF) . As of 12:13 p.m. EST, Pacific Biosciences' stock is up by 18.3% after rising by as much as 31.2% earlier in the day.
Through one of its subsidiaries, Softbank Group will make a $900 million investment in Pacific Biosciences in the form of senior convertible notes. The notes will have a conversion price of $43.50 per share of the company's common stock, representing a 10% premium over Pacific Biosciences' share price as of the end of yesterday's trading session.
This helps explain, at least in part, why investors are enthusiastic about this deal. The notes will carry an interest rate of 1.5% per year and will mature on Feb. 15, 2028, unless they are converted into shares of common stock on an earlier date.
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Why Pacific Biosciences of California Stock Is Soaring Today