Halozyme prices $1.3B convertible notes offering due 2033

Halozyme Therapeutics, Inc. (Nasdaq: HALO) priced a $1.3 billion private offering of 1.50% convertible senior notes due October 1, 2033, according to a company statement. The offering was increased from an initially announced size of $1.05 billion.

The notes carry an initial conversion price of approximately $139.84 per share, representing a 27.5% premium above the September 17, 2026 closing price of $109.68. The company also granted initial purchasers a 13-day option to buy up to an additional $200 million in notes. The offering is expected to close on September 22, 2026.

Halozyme expects net proceeds of approximately $1.275 billion, or up to $1.471 billion if the additional purchase option is exercised in full. The company plans to use approximately $162.5 million of proceeds to fund capped call transactions, which carry a cap price of approximately $208.39 per share, representing a 90% premium to the September 17 closing price.

The company also intends to use a portion of proceeds to repurchase existing convertible notes, including approximately $151.7 million principal of its 0.25% notes due 2027 at a total cost of approximately $217.0 million, and $220.0 million principal of its 1.00% notes due 2028 at a total cost of approximately $435.5 million.

Remaining proceeds are designated for general corporate purposes, including working capital, capital expenditures, and potential acquisitions. The notes are being offered solely to qualified institutional buyers under Rule 144A and have not been registered under the Securities Act of 1933.

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