Company: PACB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001299130-25-000168
Chunk: 75

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 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 2028 Notes. The 2028 Notes were issued on February 16, 2021 and bore interest at a rate of 1.50% per annum. As discussed above, in June 2023 we completed an exchange of $441.0 million in aggregate principal amount of our 2028 Notes for $441.0 million aggregate principal amount of the 2030 Notes, leaving approximately $459.0 million in aggregate principal amount of 2028 Notes outstanding. Also as discussed above, in November 2024 we completed an exchange of the remaining $459.0 million in aggregate principal amount of the 202