Ligand Pharmaceuticals (Nasdaq: LGND) has closed a $700.0 million offering of 0.00% convertible senior notes due 2031, according to a press release from the Jupiter, Fla.-based company.

The total amount includes $75.0 million in additional notes purchased by initial purchasers through the full exercise of their option. Net proceeds from the offering totaled approximately $678.2 million after fees and expenses.

Ligand used approximately $72.9 million of the net proceeds to fund convertible note hedge transactions, after offsetting costs with proceeds from related warrant transactions. The company also used approximately $60.0 million to repurchase 228,859 shares of its common stock at $262.17 per share in privately negotiated transactions.

The remaining proceeds are expected to be used for general corporate purposes, including potential investments in complementary businesses and technologies. Ligand noted it has no present commitments beyond its previously announced acquisition of XOMA Royalty Corporation.

In connection with the offering, Ligand entered into convertible note hedge transactions intended to reduce potential dilution to common stockholders upon conversion of the notes. The company also issued warrants with an initial strike price of $524.34 per share, representing a 100% premium over the stock's last reported price at the time of pricing. The warrant transactions could have a dilutive effect if the market price of Ligand's common stock exceeds the warrant strike price.