Ligand Pharmaceuticals announced a proposed private placement of $550 million aggregate principal amount of convertible senior notes due 2031, with an option for initial purchasers to buy up to an additional $82.5 million. The notes will be general unsecured senior obligations, maturing on September 15, 2031, and interest will be paid semiannually starting March 15, 2027. Ligand plans to use a portion of the net proceeds to fund convertible note hedge transactions and up to $75 million to repurchase shares from certain note purchasers, with the remainder for general corporate purposes including potential investments. The hedge transactions are intended to reduce potential dilution upon conversion, while the warrant transactions could have a separate dilutive effect. The offering is being made only to qualified institutional buyers under Rule 144A.
Ligand Pharmaceuticals IncorporatedAnnounced $550M convertible note offering, which typically dilutes existing shareholders and increases leverage.