Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 29

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 the 2030 Notes of approximately $7.3 million, which were recorded as debt issuance costs and are presented as a reduction to the 2030 Notes on our condensed consolidated balance sheets. The debt issuance costs are amortized to interest expense using the effective interest method over the term of the 2030 Notes, resulting in an effective interest rate of 1.6%. We also paid accrued but unpaid interest of $2.5 million on the 2028 Notes in connection with the 2023 Exchange Transaction on June 30, 2023.We did not receive any cash proceeds from the 2023 Exchange Transaction. In exchange for issuing the 2030 Notes pursuant to the 2023 Exchange Transaction, we received and cancelled the exchanged 2028 Notes. 

Q3 Fiscal 2025 Form 10-Q18

Following the closing of the 2023 Exchange Transaction, $459.0 million in aggregate principal amount of 2028 Notes remained outstanding with terms unchanged.The net carrying amount of the liability for the 2030 Notes is included as convertible senior notes, net, non-current in the condensed consolidated balance sheets as follows:(In thousands)September 30,2025December 31,2024Principal amount$441,000 $441,000 Unamortized debt premium398 453 Unamortized debt issuance costs(5,239)(5,959)Net carrying amount$436,159 $435,494 Interest expense for the 2030 Notes was as follows:Three Months Ended September 30,Nine Months Ended September 30,(In thousands)2025202420252024Contractual interest expense$1,516 $1,516 $4,548 $4,565 Amortization of debt issuance costs241 237 720 712 Total interest expense$1,757 $1,753 $5,268 $5,277 As of September 30, 2025, the estimated fair value (Level 2) of the 2030 Notes was $314.5 million. The fair value of the 2030 Notes is estimated using a binomial lattice model that is primarily affected by the trading price of our common stock, market interest rates and volatility.2028 Convertible Senior NotesOn February 9, 2021, we entered into an investment agreement with SBN relating to the issuance and sale to SBN of $900.0 million in aggregate principal amount of the