Halozyme prices a larger $1.3 billion convertible financing

Halozyme ($HALO) increased its convertible-note offering to $1.3 billion from $1.05 billion and set a 1.50% coupon. The notes mature in 2033 and initially convert at approximately $139.84 per share, a 27.5% premium to the reference share price. Buyers can purchase another $200 million under an option, while closing is expected on September 22.

Expected base net proceeds are approximately $1.275 billion. Planned uses include $162.5 million for capped-call transactions and about $652.5 million to repurchase portions of existing 2027 and 2028 convertible notes, including accrued interest. The repurchase cost exceeds the principal being retired and should not be described as an equivalent reduction in face-value debt. This is a pricing and upsizing update, not a separate financing from the earlier proposal.

Sources:

• Halozyme — final offering terms, PR Newswire