Avid Bioservices, Inc.: debt financing — Avid Bioservices receives acceleration notice on $146M exchangeable notes; may restate prior financials

Avid Bioservices, Inc.

Holder of ≥25% of 1.25% Exchangeable Senior Notes due 2026 declared ~$146M principal and interest immediately due.
Event of default triggered by failure to remove legend and unpaid Additional Interest of 0.5% p.a. (~$1.4M accrued).
Cross-default under Bank of America credit agreement (no outstanding borrowings); seeking waiver.
Company evaluating restatement of quarterly reports and FY2023 10-K for note misclassification and missing interest.
May delay filing Q for Jan 31, 2024; warns it may need to raise funds or face bankruptcy.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.7

Avid Bioservices, Inc. reported a default on credit facility of No amounts are outstanding under the Company’s Credit Agreement with Bank of America, N.A..

Instrument: credit facility
Principal: No amounts are outstanding under the Company’s Credit Agreement
Counterparty: Bank of America, N.A.
Event: default

Exact text from the filing

As a result of the Acceleration Event, such occurrence also resulted in a cross-default under the Company’s Credit Agreement with Bank of America, N.A. (the “Revolving Lender”)

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Avid Bioservices, Inc. faced acceleration on convertible notes of approximately $146.0 million with holder of its 1.250% Exchangeable Senior Notes due 2026 at 2.75% per annum until paid in full maturing due 2026.

Instrument: convertible notes
Principal: approximately $146.0 million
Counterparty: holder of its 1.250% Exchangeable Senior Notes due 2026
Rate: 2.75% per annum until paid in full
Maturity: due 2026
Event: acceleration

Exact text from the filing

(the “Acceleration Event”). The accelerated amount, inclusive of principal and interest due and payable, as of February 29, 2024, the date of acceleration, was approximately $146.0 million and accrues interest at 2.75% per annum until paid in full. The Company did not receive any notices and was not otherwise made aware of the Event of Default prior to receipt of

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Source: SEC EDGAR

accession 0001683168-24-001359

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