HALO - Halozyme Therapeutics raises $625M through convertible senior notes due 2028

• Halozyme Therapeutics ( NASDAQ: HALO ) has priced upsized offering of $625M of 1.00% convertible senior unsecured notes due  August 15, 2028.
• The offering was upsized from an originally announced $500M.
• Initial purchasers granted an option to purchase up to an additional $95M of Convertible Notes.
• Interest will be payable semi-annually in arrears.
• The company expects to close the offering on August 18, 2022.
• The company also entered into capped call transactions with certain of the initial purchasers of the Convertible Notes.
• The capped call transactions are expected generally to reduce potential dilution to holders of the company's common stock on any conversion of the Convertible Notes.
• The cap price of the capped call transactions is initially $75.41 per share of the company's common stock, representing a premium of 75% above the last reported sale price of $43.09 per share on August 15, 2022.
• The company will receive net proceeds from the offering of approximately $608.7M (or approximately $701.4M if the initial purchasers exercise their option).
• The company expects to use approximately $60M of the net proceeds to fund the cost of entering into the capped call transactions and approximately $77.6M of the net proceeds to enter into privately negotiated agreements with certain holders of its outstanding 1.25% convertible senior notes due 2024.
• The company also expects to use a portion of the net proceeds to repurchase $200M shares of its common stock and approximately $90M to repurchase approximately 2.09M of its shares.
• Further, the company expects to use a portion of the net proceeds to repay all of its outstanding $250M term loan facility due 2026 and the remainder for general corporate purposes.

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