BioCentury
ARTICLE | Finance

Convert resurgence

Why biotech convertible debt deals are at highest levels since 2006

November 10, 2014 8:00 AM UTC

Biotechs have raised $5.6 billion through convertible debt financings so far this year, the highest amount since 2006. Two bankers attributed the resurgence to a growing mid-cap space that is taking advantage of low interest rates and attractive strike prices.

Converts provide the investor with a fixed interest rate return plus the potential to convert the debt into equity at a pre-specified strike price...