Arrowhead Pharmaceuticals today announced plans to raise capital through two simultaneous registered public offerings: $500 million aggregate principal amount of convertible senior notes due 2032 and $200 million of common stock. The company has also granted underwriters a 30-day option to purchase up to an additional $75 million of notes and $30 million of common shares, respectively. The debt and equity offerings are structured so that each may close independently, providing Arrowhead flexibility to access markets based on prevailing conditions.

The notes will be senior, unsecured obligations bearing interest payable semi-annually and maturing January 15, 2032 unless repurchased, redeemed or converted earlier. Holders may convert under specified circumstances and during defined windows, with settlement at Arrowhead’s election in cash, shares or a combination. From January 16, 2029 through the 30th trading day before maturity, Arrowhead may redeem notes for cash if its common stock trades above 130 percent of the conversion price for a prescribed period. In the event of a fundamental corporate change, holders may require a cash repurchase equal to principal plus accrued interest.

Arrowhead intends to deploy net proceeds to fund capped call transactions designed to mitigate equity dilution upon conversion and to support general corporate purposes, including working capital, R&D, clinical trials and preparation for late-stage product launches. A portion may prepay existing credit facility borrowings. The dual-offering strategy balances debt financing with equity capital, potentially diluting shareholders but bolstering the balance sheet for ongoing development in RNAi therapeutics. Investors should weigh the impact of additional shares, note conversion dynamics and the company’s pipeline milestones on future valuation.