Vaxcyte (NASDAQ: PCVX) raises $575 million with notes and stock sale

What happened

Vaxcyte, Inc. (NASDAQ: PCVX) closed a financing on October 9, 2026, and sold $575 million of 1.50% convertible senior notes due 2032. The notes are senior unsecured obligations. The initial conversion rate is 11.1607 shares per $1,000 principal amount, or about $89.60 a share.

The company also sold 7,412,500 shares of common stock at $64.00 each and 400,000 pre-funded warrants at $63.999 each. The underwriters bought the shares at $60.64 each and the pre-funded warrants at $60.639 each.

The equity underwriters fully exercised a 30-day option for 1,171,875 additional shares on October 7, 2026. Vaxcyte said net proceeds were about $544.3 million from equity and $558.7 million from debt, after discounts and expenses.

Key numbers

Metric Latest Change Source
Convertible notes sold $575.0 million SEC 8-K
Common shares sold 7,412,500 shares SEC 8-K
Initial conversion price $89.60 per share SEC 8-K
Net proceeds from equity offering about $544.3 million SEC 8-K
Net proceeds from debt offering about $558.7 million SEC 8-K

Read more: Vaxcyte (PCVX) stock analysis and investment case

Why it matters

This filing is about financing, not product data. It shows Vaxcyte raised cash while taking on debt and possible share issuance. OptimistFi's case is that PCVX needs outside capital to pursue its vaccine platform, and this filing shows the company can still raise it.

The $75.0 million over-allotment cap was 15% of the $500.0 million base note deal, and the underwriters used the full option before closing. The notes also carry a 1.50% coupon, so the capital comes with interest costs and dilution risk.

The structure cuts both ways. Vaxcyte issued common stock and convertible notes, so the financing supports operations but can dilute holders if the shares rise enough for conversion or redemption.

Browse: stock research on every company OptimistFi covers

What's next

The next dated milestone is April 15, 2027, when interest on the notes is first scheduled to be paid. The notes mature on October 15, 2032.

Vaxcyte may seek provisional redemption on or after October 22, 2029 if the stock trades above 130% of the conversion price for the test period. If that test is not met, the notes stay outstanding until conversion, repurchase or maturity.

The filing also says Vaxcyte can settle conversions with cash, shares of common stock or both, at its election.

More from OptimistFi

Sources

  • SEC 8-K — Reports the closing of the concurrent equity and convertible note offerings on October 9, 2026.
  • First Supplemental Indenture — Sets the terms of the 1.50% convertible senior notes due 2032.

Read the full OptimistFi thesis on Vaxcyte, Inc.: https://optimistfi.com/stocks/PCVX

See what would break the Vaxcyte, Inc. thesis and track it live on the OptimistFi Thesis-Break Engine.

Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.

The full Vaxcyte, Inc. investment case, its status and the next test to watch live on the Vaxcyte, Inc. thesis page.

Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.