Ocugen, Inc. Announces Pricing of $115 Million of 6.75% Convertible Senior Notes

Ocugen (NASDAQ: OCGN) priced $115.0 million aggregate principal amount of 6.75% convertible senior notes due 2034 in a private Rule 144A offering, with a 13-day option for an additional $15.0 million.

Rhea-AI Summary

Ocugen (NASDAQ: OCGN) priced $115.0 million aggregate principal amount of 6.75% convertible senior notes due 2034 in a private Rule 144A offering, with a 13-day option for an additional $15.0 million. The notes sold at 90% of principal.

Ocugen expects closing on May 7, 2026, with estimated net proceeds of approximately $99.5 million (or $112.6 million if the option is exercised). Approximately $32.7 million of net proceeds are planned to repay the Avenue loan; remaining proceeds are for general corporate purposes. Initial conversion price is approximately $2.68 per share (372.7866 shares per $1,000), convertible after May 15, 2027 or upon the reserved share effective date.

Positive

• $115M convertible notes priced in private Rule 144A offering
• Estimated $99.5M net proceeds (up to $112.6M)
• Planned repayment of Avenue loan with $32.7M of proceeds

Negative

• Notes sold at 90% of principal amount
• Semi-annual 6.75% interest creates ongoing cash burden
• Initial conversion price of $2.68 may dilute shareholders if converted

Argus May 5 session

-19.46% close to close Open Argus

Details

News Market Reaction – OCGN

On May 5, the day this news came out, OCGN closed 19.46% below the previous close.

Data tracked by StockTitan Argus for the May 5 session.

Key Figures

Convertible notes size: $115 million Additional notes option: $15 million Coupon rate: 6.75% per year +5 more

Convertible notes size

$115 million

Aggregate principal amount of 6.75% Convertible Senior Notes due 2034

Additional notes option

$15 million

13-day option for initial purchaser to buy additional notes

Coupon rate

6.75% per year

Interest rate on Convertible Senior Notes, payable semi-annually

Net proceeds (base)

$99.5 million

Estimated net proceeds if option for additional notes is not exercised

Net proceeds (with option)

$112.6 million

Estimated net proceeds if additional notes option exercised in full

Debt repayment amount

$32.7 million

Net proceeds to fully repay Avenue Loan Agreement principal and interest

Offering price

90% of principal

Offering price of notes relative to principal amount

Conversion rate

372.7866 shares per $1,000

Initial conversion rate for notes into Ocugen common stock

Historical Context

5 past events · Latest: Apr 29

5 events

1. Apr 29

   Earnings call notice

   24h Move

   +1.2%

   Scheduled Q1 2026 results call and business update webcast details.

2. Apr 23

   Conference presentations

   24h Move

   -0.6%

   Participation in late April investor and industry conferences discussing pipeline.

3. Apr 01

   Clinical trial progress

   24h Move

   -1.1%

   Early completion of dosing in Phase 2/3 GARDian3 trial for OCU410ST.

4. Mar 24

   Positive trial data

   24h Move

   -8.6%

   Positive 12‑month Phase 2 ArMaDa data for OCU410 in geographic atrophy.

5. Mar 23

   Data webcast notice

   24h Move

   +2.9%

   Announcement of webcast to discuss Phase 2 OCU410 clinical trial data.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible senior notes, rule 144a, fundamental change, indenture, +1 more

5 terms

convertible senior notes financial

"announced the pricing of $115 million aggregate principal amount of 6.75% Convertible Senior Notes"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

rule 144a regulatory

"in a private offering ... to qualified institutional buyers pursuant to Rule 144A under the Securities Act"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

fundamental change financial

"upon the occurrence of a fundamental change (as defined in the indenture governing the notes)"

A fundamental change is a major shift in how a company or economy operates, like a new technology or a big change in leadership. It matters because such changes can affect the value or stability of investments, making them more or less attractive. Think of it like a major upgrade or shift in the rules of a game that can change the outcome.

indenture financial

"a fundamental change (as defined in the indenture governing the notes)"

An indenture is a legal agreement between a company that borrows money by issuing bonds and the people who buy those bonds. It explains the rules the company must follow, like paying back the money and keeping certain financial promises. This document helps both sides understand their rights and responsibilities.

conversion price financial

"an initial conversion rate ... (equivalent to an initial conversion price of approximately $2.68 per share)"

The conversion price is the fixed price at which a convertible security, like a bond or preferred stock, can be exchanged for shares of common stock. It acts like a set rate that determines how many shares an investor can receive if they choose to convert their investment. This helps investors understand the value and potential benefits of converting their securities into company shares.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MALVERN, Pa., May 05, 2026 (GLOBE NEWSWIRE) -- Ocugen, Inc. (“Ocugen”) (NASDAQ: OCGN) today announced the pricing of $115 million aggregate principal amount of 6.75% Convertible Senior Notes due 2034 (the “notes”) in a private offering (the “offering”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Ocugen also granted the initial purchaser of the notes a 13-day option to purchase up to an additional $15 million aggregate principal amount of the notes. The sale of the notes to the initial purchaser is expected to close on May 7, 2026, subject to customary closing conditions, and is expected to result in approximately $99.5 million (or approximately $112.6 million if the initial purchaser exercises its option to purchase additional notes in full) in net proceeds to Ocugen after deducting the initial purchaser’s discount and estimated offering expenses payable by Ocugen.

The offering price of the notes is 90% of the principal amount of notes. Ocugen intends to use approximately $32.7 million of the net proceeds from the offering to fully repay the outstanding principal amount of, plus accrued and unpaid interest on, the loan outstanding under its Loan and Security Agreement with affiliates of Avenue Capital Group (the “Avenue Loan Agreement”), and pay the related prepayment fee and other fees and expenses in connection therewith. Ocugen expects to use the remaining net proceeds from the offering, including any additional proceeds from the initial purchaser’s exercise of its option to purchase additional notes, for general corporate purposes.

The notes will be Ocugen’s general unsecured obligations and will rank senior in right of payment to all of its future indebtedness that is expressly subordinated in right of payment to the notes, equal in right of payment to all of its existing and future liabilities that are not so subordinated, and junior to all of its secured indebtedness, to the extent of the value of the assets securing such indebtedness. Interest will be payable semi-annually in arrears. The notes will bear interest at a rate of 6.75% per year. Interest will be payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2026. The notes will mature on May 15, 2034, unless earlier repurchased, redeemed or converted.

Ocugen may not redeem the notes prior to May 15, 2029. Ocugen may redeem for cash all or any portion of the notes (subject to certain limitations), at its option, on or after May 15, 2029 and prior to the 41^st scheduled trading day immediately preceding the maturity date, if the last reported sale price of Ocugen’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which Ocugen provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Holders of the notes may require Ocugen to repurchase for cash all or any portion of their notes on May 15, 2032 at a repurchase price equal to 100% of the principal amount of notes to be repurchased, plus accrued and unpaid interest to, but excluding May 15, 2032. In addition, holders of the notes will have the right to require Ocugen to repurchase all or a portion of their notes upon the occurrence of a fundamental change (as defined in the indenture governing the notes) at a purchase price of 100% of their principal amount plus any accrued and unpaid interest to, but excluding, the relevant fundamental change repurchase date.

The notes may not be converted prior to the earlier of (i) May 15, 2027 and (ii) the “reserved share effective date” (as defined in the indenture governing the notes), which is effectively the date on which Ocugen reserves the maximum number of shares of common stock underlying the notes. The notes will be convertible at an initial conversion rate of 372.7866 shares of Ocugen’s common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $2.68 per share, which represents a conversion premium of approximately 45% to the last reported sale price of $1.85 per share of Ocugen’s common stock on The Nasdaq Capital Market on May 4, 2026). Conversions of the notes may be settled in cash, shares of Ocugen’s common stock, or a combination thereof, at Ocugen’s election; provided that unless and until the reserved share effective date occurs, conversions of the notes will be settled via cash settlement.

The notes were only offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act. Neither the notes nor the shares of Ocugen’s common stock potentially issuable upon conversion of the notes, if any, have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from such registration requirements.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

Cautionary Note on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including but not limited to, statements regarding the anticipated use of proceeds from the offering, including the repayment of the Avenue Loan Agreement; the completion of the offering, and other statements contained in this press release that are not historical facts. Ocugen may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should,” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks, and uncertainties that may cause actual events or results to differ materially from Ocugen’s current expectations, including, but not limited to: risks related to the offering and uncertainties related to market conditions; the impact of the offering on the market price of Ocugen’s common stock; and risks related to the potential dilution to holders of Ocugen’s common stock. These and other risks and uncertainties are more fully described in Ocugen’s periodic filings with the Securities and Exchange Commission (SEC), including the risk factors described in the section entitled “Risk Factors” in the quarterly and annual reports that Ocugen files with the SEC. Any forward-looking statements that Ocugen makes in this press release speak only as of the date of this press release. Except as required by law, Ocugen assumes no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events, or otherwise, after the date of this press release.

Contact:

Candice Masse
astr partners
candice.masse@astrpartners.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Ocugen (OCGN) announce about the May 2026 convertible note offering?

Ocugen priced $115.0 million of 6.75% convertible senior notes due 2034 at 90% of principal. According to the company, there is a 13-day option for an additional $15.0 million and expected closing on May 7, 2026.

How much net proceeds will Ocugen (OCGN) receive from the offering and how will they be used?

Ocugen expects approximately $99.5 million in net proceeds, or about $112.6 million if the option is exercised. According to the company, roughly $32.7 million will repay the Avenue loan and the remainder is for general corporate purposes.

What are the conversion terms and conversion price for Ocugen's (OCGN) new notes?

The notes convert at 372.7866 shares per $1,000 principal, implying an initial conversion price of about $2.68 per share. According to the company, conversions may settle in cash, shares, or both, subject to conditions in the indenture.

When can holders convert or Ocugen redeem the convertible notes (OCGN)?

Conversions are not permitted prior to the earlier of May 15, 2027 or the reserved share effective date. According to the company, Ocugen may redeem notes for cash beginning May 15, 2029 under specified price and trading-price conditions.

What investor protections or repurchase rights exist for Ocugen (OCGN) convertible noteholders?

Holders may require Ocugen to repurchase notes on May 15, 2032 at 100% principal plus accrued interest and on a fundamental change at 100% principal. According to the company, these repurchase rights are defined in the indenture governing the notes.