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Thursday, December 2, 2021

Cryoport [NASDAQ: CYRX] Announces Pricing of Upsized $350.0M Convertible Senior Notes Offering

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Cryoport, Inc. [NASDAQ: CYRX] has successfully priced the offering of $350,000,000 aggregate principal amount of 0.75% convertible senior notes due 2026 in a private offering to eligible institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended. The offering size was augmented from the earlier declared offering size of $300,000,000 aggregate principal amount of notes.

Furthermore, Cryoport also disclosed that it has awarded the initial buyers of the notes an option to buy up to an additional $52,500,000 principal amount of notes. The issuance and sale of the notes are planned to settle on November 12, 2021, dependent on customary closing conditions. It has been disclosed that the notes will be senior, unsecured obligations of Cryoport and will add interest at a rate of 0.75% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2022.

In addition, the maturity date of the notes is December 1, 2026, unless earlier repurchased, redeemed, or converted. The noteholders will have the option to convert their notes only upon the occurrence of certain events before September 1, 2026. Moreover, the noteholders may convert their notes at any time at their election until the close of business on the second planned trading day instantly before the maturity date from and after September 1, 2026.

CYRX revealed that the initial conversion rate is 8.5038 shares of common stock per $1,000 principal amount of notes. This rate signifies an initial conversion price of nearly $117.59 per share of common stock. The initial conversion price signifies a premium of nearly 45.0% over the last reported sale price of $81.10 per share of Cryoport’s common stock on November 9, 2021.

Expected Profit from Convertible Senior Notes Offering

Cryoport predicts that the net profit from the offering will be nearly $339.0 million (or nearly $389.9 million if the initial buyers fully exercise their option to purchase additional notes), after subtracting the initial buyers’ discounts and commissions and projected offering expenses. Cryoport is planning to utilize the net profit to buy back nearly $100.7 million principal amount of its outstanding 3.00% Convertible Senior Notes due 2025.

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