Ligand Pharmaceuticals completed its offering of 0.00% convertible senior notes due 2031, raising an aggregate principal amount of $700.0 million, which includes the full exercise of the initial purchasers' option to purchase an additional $75.0 million. Net proceeds were approximately $678.2 million after fees and expenses. Ligand used about $72.9 million of the net proceeds to pay for convertible note hedge transactions, and approximately $60.0 million to repurchase 228,859 shares of its common stock at $262.17 per share. The remaining net proceeds are intended for general corporate purposes, including the previously announced acquisition of XOMA Royalty Corporation. The convertible note hedge transactions are expected to reduce potential dilution upon conversion, while the warrant transactions could have a dilutive effect if the stock price exceeds the initial warrant strike price of $524.34 per share.
Ligand Pharmaceuticals IncorporatedLigand completed a $700M convertible note offering, repurchased shares, and funded acquisition, strengthening its financial position.
XOMA Royalty CorporationLigand intends to use proceeds for the previously announced acquisition of XOMA Royalty Corporation, providing capital inflow.