San Diego – September 19, 2026 -- Halozyme Therapeutics (Nasdaq: HALO) priced $1.3 billion in convertible senior notes due 2033, upsized from an initially announced $1.05 billion offering, carrying a 1.50% annual coupon.
Halozyme secures $1.275 billion in net proceeds from the notes sale
The San Diego-based biopharmaceutical company said net proceeds from the offering total approximately $1.275 billion, rising to $1.471 billion if initial purchasers fully exercise a 13-day option to buy an additional $200 million in notes. The notes, sold to qualified institutional buyers under Rule 144A, carry an initial conversion price of approximately $139.84 per share, a 27.5% premium over Halozyme's September 17, 2026 closing price of $109.68. The notes mature October 1, 2033, with closing expected September 22, 2026.
Capped call deals cap dilution at $208.39 per share
Halozyme entered into privately negotiated capped call transactions covering shares underlying the new notes, with a cap price of approximately $208.39 per share -- a 90.0% premium to the September 17 closing price. The company will spend roughly $162.5 million of net proceeds funding these capped calls, designed to limit share dilution or offset cash payments above the notes' principal if Halozyme's stock rises past the conversion price.
Proceeds fund buyback of $371.7 million in existing convertible debt
Halozyme will use part of the proceeds to repurchase $151.7 million principal of its 0.25% convertible notes due 2027 for a total cost of approximately $217.0 million, and $220.0 million principal of its 1.00% convertible notes due 2028 for approximately $435.5 million, both including accrued interest. The remainder of net proceeds is earmarked for working capital, capital expenditures, potential acquisitions and strategic transactions, as well as possible future repurchases of the existing convertible notes.