The notes, which carry a 1.50% annual interest rate payable semi-annually, feature an initial conversion price of approximately $139.84 per share. This represents a 27.5% premium over the company’s closing stock price of $109.68 on September 17, 2026. Halozyme expects the transaction to close on September 22, pending customary closing conditions.
Halozyme Therapeutics Prices Upsized $1.3 Billion Convertible Offering
San Diego-based biopharmaceutical firm Halozyme Therapeutics has priced an upsized $1.3 billion offering of convertible senior notes due in 2033. The company increased the offering from its initial $1.05 billion target, providing initial purchasers with a 13-day option to acquire an additional $200 million in notes to meet institutional demand.
Management intends to allocate a significant portion of the projected $1.275 billion in net proceeds toward retiring existing debt. Specifically, the company plans to repurchase approximately $151.7 million of its 2027 notes and $220 million of its 2028 notes, with total repurchase costs reaching roughly $652.5 million. The remaining capital is earmarked for general corporate purposes, including potential acquisitions, capital expenditures, and working capital. To mitigate potential stock dilution, Halozyme has entered into privately negotiated capped call transactions with a cap price set at $208.39 per share.
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