BridgeBio raises $1 billion in convertible preferred equity

BridgeBio Pharma, Inc. (Nasdaq: BBIO) has entered into an agreement to raise $1 billion through newly issued Series A Cumulative Convertible Participating Preferred Stock, with Sixth Street leading the investment and HealthCare Royalty, a business of KKR (NYSE: KKR), participating.

Sixth Street contributed $800 million as lead investor, while HealthCare Royalty funded $133.9 million at the close of the transaction. The preferred stock carries a 7.00% initial dividend, payable in kind or in cash at BridgeBio's election. The initial conversion price is set at $137.79 per share, representing a premium of more than 100% to the company's 30-day volume-weighted average price, increasing to $153.10 per share from the fifth anniversary of issuance.

The preferred stock is structured as permanent equity with no scheduled maturity and no redemption at the holder's option. BridgeBio retains the right to redeem the preferred stock for cash or, under certain circumstances, convert it into common stock.

According to a statement from the press release, BridgeBio CEO Neil Kumar said the financing is intended to ensure the company has resources to support its launching medicines and to maximize economic value.

BridgeBio said it plans to use the capital to support its current commercial product, Attruby, and to prepare for up to three additional U.S. product launches over the next 12 months, including BBP-418 for LGMD2I/R9, encaleret for ADH1, and infigratinib for achondroplasia.

Latham & Watkins LLP served as legal advisor to BridgeBio. Evercore served as financial advisor to Sixth Street, with Sullivan & Cromwell LLP and Mintz LLP as its legal advisors. Gibson, Dunn & Crutcher LLP advised HealthCare Royalty. Additional details will be filed in a Current Report on Form 8-K.

You May Also Be Interested In

• VivoPower shifts focus to AI data centers, revises unit spinoff plans
• JPMorgan Upgrades Nanya Technology Corp (2408:TT) to Overweight
• Alarum Technologies responds to FBI investigation of subsidiary NetNut