Halozyme proposes $1.05 billion convertible refinancing

Halozyme ($HALO) announced plans to sell $1.05 billion of convertible senior notes due in 2033, with an option for initial purchasers to buy a further $150 million. The securities would be senior unsecured obligations paying interest twice a year. The coupon and initial conversion rate were to be determined when the offering is priced.

Proceeds are intended partly for capped-call transactions and repurchases of existing convertible notes due in 2027 and 2028, with the remainder available for general corporate purposes. Capped calls are intended to limit potential dilution or certain cash payments associated with conversion, but do not eliminate all financing risks. The announcement describes a proposed refinancing subject to market conditions, rather than a completed $1.05 billion cash raise or a new operating-sales milestone.

Sources:

• Halozyme — proposed convertible notes, PR Newswire