Company: DVAX
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001029142-25-000071
Chunk: 236

Company: DYNAVAX TECHNOLOGIES CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 236
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 corporate event or such notice of redemption.As of March 31, 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 March 31, 2025, the fair value of the 2030 Notes was $223.3 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 EndedMarch 31, 20252024Stated coupon interest$1,404 $1,409 Amortization of debt issuance cost288 286 Total interest expense$1,692 $1,695 

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Table of Contents

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 Notes. The Capped Calls are expected to offset the potential dilution to our common stock as a result of any conversion of the 2026 Notes, subject to a cap based on the cap price.As part of the Refinancing Transaction completed in March 2025, we unwound a portion of the Capped Calls. As part of the unwind, we received $46.6 million in cash, which was used to partially fund the cash payment associated with the Refinancing Transaction and the repurchase of our common stock. As of March 31, 2025, following the partial unwind, Capped Calls covering approximately 3