Shares hit record after upsized convertible bond sale
Shares of Halozyme Therapeutics HALO.O were up 0.8% at $110.55 and touched a fresh record high on Friday after it secured more capital than planned.
HALO rose as much as 1.9% to $111.80, surpassing its previous all-time intraday high of $111.15 reached on Sept. 3.
The San Diego, California-based drug delivery firm late Thursday announced pricing of a private offering of $1.3 billion of 1.5% convertible bonds due Oct. 1, 2033.
The conversion price of $139.84 is a 27.5% premium to the stock's last sale of $109.68 on Thursday.
Halozyme finished up 1% on Thursday after the company launched a $1.05 billion offering to repurchase its outstanding 0.25% convertible bonds due 2027 and 1% convertible bonds due 2028; the remainder is earmarked for working capital, capex, potential acquisitions and other uses.
The company expects to use about $162.6 million of proceeds to fund capped call transactions to mitigate potential dilution; the cap price of $209.39 is a 90% premium to the stock's last close.
HALO is now up 64% year to date.
The average rating of 10 analysts is "buy"; the median price target is $105, up from $90 on June 18, according to LSEG data.
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