Company: DVAX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001029142-25-000117
Chunk: 230

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 230
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 a repurchase price equal to 100% of the principal amount of the 2030 Notes to be repurchased, plus accrued and unpaid interest, but excluding, the fundamental change repurchase date. In addition, following certain corporate events (as defined in the indenture governing the 2030 Notes) or if we deliver a notice of redemption before the maturity date, we will, in certain circumstances, adjust the conversion rate for holders who elect to convert their 2030 Notes in connection with such corporate event or such notice of redemption.As of June 30, 2025, the 2030 Notes were recorded at the aggregate principal amount of $225.0 million less unamortized issuance costs of $4.5 million as a long-term liability on our condensed consolidated balance sheets. As of June 30, 2025, the fair value of the 2030 Notes was $204.6 million. The fair value was estimated using a reputable third-party valuation model based on observable inputs and is considered Level 2 in the fair value hierarchy. The debt issuance costs are amortized to interest expense over the contractual term of the 2030 Notes at an effective interest rate of 2.4%.The following table presents the components of interest expense related to our Convertible Notes (in thousands):  Three Months EndedJune 30,Six Months EndedJune 30, 2025202420252024Stated coupon interest$1,376 $1,409 $2,780 $2,818 Amortization of debt issuance cost265 289 $553 $575 Total interest expense$1,641 $1,698 $3,333 $3,393 Capped Call OptionsIn connection with the issuance of the 2026 Notes, we entered into capped call option transactions with one of the initial purchasers of the 2026 Notes and other financial institutions, totaling $27.2 million (the “Capped Calls”). The Capped Calls cover, subject to customary adjustments, the number of shares of our common stock that initially underlie the 2026 Notes (or 21,542,871 shares of our common stock). The Capped Calls have an initial strike price and an initial cap price of $10.47 per share and $15.80 per share, respectively, subject to certain adjustments. Conditions that cause adjustments to the initial strike price of the Capped Calls mirror conditions that result in corresponding adjustments to the conversion price of the 2026