Halozyme prices $1.3 billion convertible notes, upsized from $1.05 billion
The notes carry a conversion price near $139.84, a 27.5% premium over Wednesday's $109.68 close
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Halozyme Therapeutics has priced $1.3 billion of convertible senior notes due 2033, up from the $1.05 billion first planned. The notes pay 1.50% interest and give initial purchasers a 13-day option to buy up to $200 million more.
The conversion price is set at about $139.84 a share, a premium of roughly 27.5% over Wednesday's closing price of $109.68. Halozyme expects net proceeds of about $1.275 billion, or about $1.471 billion if the option is fully exercised.
The company will use about $162.5 million of the proceeds for capped call transactions, meant to limit dilution if its stock rises. It also plans to repurchase about $151.7 million of its 0.25% notes due 2027 and $220.0 million of its 1.00% notes due 2028. The offering is expected to close on September 22, 2026.
The larger size points to steady demand for the deal, and the refinancing pushes out near-term debt maturities while locking in a low coupon. But the conversion premium sits well below where the stock has traded recently, meaning existing holders face dilution risk, and the capped calls cap how much upside investors can capture if the shares rally hard.