Evotec SE (NASDAQ: EVO) completed a placement of senior unsecured convertible bonds totaling €116.1 million, according to a company statement.

The bonds mature in seven years with an investor put option after five years and carry an annual interest rate of 2.625% paid semi-annually. Each bond has a denomination of €100,000 and will be repaid at 110% of principal amount at maturity, resulting in a yield to maturity of 3.882%.

The initial conversion price is set at €6.5313, representing a 37.5% premium above the reference share price of €4.75. The effective conversion price at maturity is approximately €7.1844 when accounting for the accreted redemption amount.

Settlement is expected around May 21, 2026. The company excluded shareholder pre-emption rights for the offering and is subject to a 90-day lock-up period following settlement, with certain exemptions.

Evotec plans to use the proceeds to support cash requirements for Project Horizon, a transformation program designed to strengthen the company's operating model.

A concurrent placement of existing shares occurred simultaneously to allow bond buyers to hedge market risk through short sales. Evotec will not receive proceeds from this share placement.

BNP PARIBAS and Goldman Sachs Bank Europe SE served as Joint Global Coordinators, with HSBC Continental Europe and Morgan Stanley acting as Joint Bookrunners for the transaction.

The Hamburg-based life sciences company operates drug discovery and development services with more than 4,500 employees across sites in Europe and the United States.