Loan & DebtJun 23, 2026, 04:01 AM
Ligand Prices $625M Convertible Senior Notes Due 2031
AI Summary
Ligand Pharmaceuticals announced the pricing of $625.0 million in 0.0% convertible senior notes due 2031 in a private placement. The company estimates net proceeds of approximately $605.3 million, which will be used to fund convertible note hedge transactions, repurchase 228,859 shares of its common stock for $60 million, and for general corporate purposes, including investing in complementary businesses. The offering includes an option for initial purchasers to buy an additional $75.0 million in notes.
Key Highlights
- Ligand priced $625.0 million aggregate principal amount of 0.0% convertible senior notes due 2031.
- Initial purchasers have an option to buy an additional $75.0 million in notes.
- Net proceeds are estimated at $605.3 million, or $678.2 million if the option is fully exercised.
- Approximately $72.9 million of net proceeds will fund convertible note hedge transactions.
- Ligand will use $60 million to repurchase 228,859 shares of common stock at $262.17 per share.
- The initial conversion price is $334.27 per share, a 27.5% premium over the last reported sale price.
- The warrant strike price is $524.34 per share, a 100% premium over the last reported sale price.
- Notes mature on September 15, 2031, unless earlier converted, redeemed, or repurchased.
Price Impact
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