Cytokinetics rises after upsized $650 mln convertible bonds sale

Cytokinetics' CYTK.O shares up 1.1% before the bell to $50.31 after biotech firm raised more capital than targeted to primarily refinance debt

South San Francisco, California-based CYTK late Tues announced pricing private offering of $650 mln 1.75% 6-yr convertible bonds (CBs)

Deal size boosted from $550 mln and initial conversion price of $68.42 is a 37.5% premium to stock's last close of $49.76

Co intends to use $402.5 mln of net offering proceeds and to issue ~2.2 mln shares in exchange for approx $399.5 mln principal of its outstanding 3.5% CBs due 2027 in negotiated transactions

Remainder to be used to support potential commercial launch of its heart disease drug, aficamten, and expand the drug's development program, among other uses

On Sept 2, CYTK shares soared ~40% to close at $49.62 after co said aficamten outperformed standard-of-care treatment, metoprolol, in late-stage study

Co has $6 bln market cap, based on ~119.7 mln shares outstanding

Through Tues, shares up ~6% YTD

16 of 20 analysts rate CYTK "strong buy" or "buy" and 4 rate "hold"; median PT is $74, per LSEG data