Halozyme Therapeutics announced the pricing of $1.3 billion aggregate principal amount of 1.50% convertible senior notes due 2033, upsized from the previously announced $1.05 billion offering, with a 13-day option granted to initial purchasers for up to an additional $200 million. The notes carry an initial conversion rate of 7.1509 shares per $1,000 principal, equivalent to a conversion price of approximately $139.84 per share, a premium of about 27.5% over the $109.68 closing price on September 17, 2026, and mature on October 1, 2033. Halozyme expects net proceeds of approximately $1.275 billion, or about $1.471 billion if the purchasers' option is exercised in full, and will use roughly $162.5 million to fund capped call transactions with a cap price of approximately $208.39 per share, a 90.0% premium. The company also agreed to repurchase approximately $151.7 million principal of its 0.25% convertible notes due 2027 for about $217.0 million and $220.0 million principal of its 1.00% convertible notes due 2028 for about $435.5 million, including accrued interest. The offering is expected to close on September 22, 2026, with the remainder of proceeds earmarked for general corporate purposes, including working capital, capital expenditures, and potential acquisitions.
Halozyme Therapeutics IncHalozyme prices an upsized $1.3B convertible notes offering and repurchases existing 2027/2028 converts, a financing/valuation event with mixed dilution and refinancing effects.
