Cancer drug maker Dendreon Corp. said Friday it expects to raise net proceeds of $529.2 million from its sale of senior notes due Jan. 15, 2016.
The company said it sold $540 million in senior notes, an increase from its previous plan to sell $500 million worth.
Dendreon said it will use the proceeds of the offering to fund further expansion of manufacturing facilities for its prostate cancer treatment Provenge, seek marketing approvals overseas,and finance marketing work and clinical trials. It plans to expand the capacity of facilities in New Jersey, California, and Georgia.
The offering's underwriters have an option to buy another $80 million in notes, which could boost Dendreon's proceeds to $607.6 million after deducting underwriting fees and expenses. Dendreon expects the sale to close Thursday. The unsecured notes carry an interest rate of 2.85 percent.
The offering of the notes and a related offer of common stock that will not bring Dendreon any proceeds are both being led by J.P. Morgan Securities LLC.
Shares of Dendreon rose 49 cents to $37.09 in afternoon trading.