Pacific Biosciences of California Inc. filed SEC Form 8-K: Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation
$PACB
Biotechnology: Laboratory Analytical Instruments
Industrials
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
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ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On March 7, 2025, Pacific Biosciences of California, Inc. (the “Company”) entered into a Third Amendment to Lease (the “Lease Amendment”) with Menlo Park Portfolio II, LLC (“Lessor”) to amend the Lease by and between Lessor and the Company, dated July 22, 2015, as amended by the First Amendment to Lease, dated December 23, 2016, and as further amended by the Second Amendment to Lease, dated December 30, 2019 (collectively, the “Lease”), relating to the Company’s corporate headquarters, research and development facilities, and manufacturing and distribution centers in Menlo Park, California. The Lease Amendment extends the term from the prior expiration on October 31, 2027 to its new expiration on April 30, 2034. Base rent during the extended term will be as follows:
PERIOD | Square Feet | $/SF/Mo./NNN | MONTHLY BASE RENT | ||||||||
11/1/2027-10/31/2028 | 180,231 | $5.70 | $1,027,316.70 | ||||||||
11/1/2028-10/31/2029 | 180,231 | $5.87 | $1,058,136.20 | ||||||||
11/1/2029-10/31/2030 | 180,231 | $6.05 | $1,089,880.29 | ||||||||
11/1/2030-10/31/2031 | 180,231 | $6.23 | $1,122,576.70 | ||||||||
11/1/2031-10/31/2032 | 180,231 | $6.42 | $1,156,254.00 | ||||||||
11/1/2032-10/31/2033 | 180,231 | $6.61 | $1,190,941.62 | ||||||||
11/1/2033-4/30/2034 | 180,231 | $6.81 | $1,226,669.86 | ||||||||
The Company will have the option to further extend the term of the Lease through April 30, 2044 at fair market rent.
Following execution of the Lease Amendment, the Company will be entitled to seventeen full months of base rent abatement, totaling $11,641,064.52. In addition, the Company will receive a tenant improvement allowance equal to $7,209,240. Lessor will be responsible for performing the agreed-upon improvements and the allowance will remain available through December 31, 2027.
Except as set forth above, the material terms of the Lease remain unchanged.
The foregoing description of the Lease Amendment does not purport to be complete and is qualified in its entirety to the full text of the Lease Amendment, which will be filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 that will be filed with the Securities and Exchange Commission.
ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.
The disclosure set forth under Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 2.03 by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Pacific Biosciences of California, Inc. | ||||||||
| By: | /s/ Michele Farmer | |||||||
| Michele Farmer | ||||||||
| Vice President and Chief Accounting Officer | ||||||||
| Date: March 13, 2025 | ||||||||