Halozyme Therapeutics, Inc. announced on September 17, 2026, the pricing of a private offering of $1.3 billion aggregate principal amount of 1.50% convertible senior notes due 2033. The offering size was increased from the previously announced $1.05 billion. The company also granted initial purchasers a 13-day option to purchase up to an additional $200 million in notes.
The notes are senior, unsecured obligations of the company and will pay interest semi-annually at an annual rate of 1.50%. The notes will mature on October 1, 2033, unless earlier redeemed or repurchased. Holders will have the right to require the company to repurchase the notes upon a fundamental change at 100% of the principal amount plus accrued interest.
The conversion rate is set at 7.1509 shares of common stock per $1,000 principal amount, which corresponds to an initial conversion price of approximately $139.84 per share. This represents a premium of approximately 27.5% above the company's closing stock price of $109.68 on September 17, 2026. The notes are being offered only to qualified institutional buyers under Rule 144A.
Halozyme expects to close the offering on September 22, 2026, subject to customary conditions. The company anticipates receiving net proceeds of approximately $1.275 billion, or $1.471 billion if the option is exercised in full. The funds will be used to repurchase approximately $151.7 million of outstanding 0.25% convertible notes due 2027 and $220.0 million of outstanding 1.00% convertible notes due 2028, with the remainder allocated for general corporate purposes, capital expenditures, and potential acquisitions.
In connection with the offering, the company entered into capped call transactions to reduce potential dilution. These transactions have a cap price of approximately $208.39 per share, representing a premium of approximately 90.0% above the reference price.
