Halozyme Therapeutics slips on $1.05 bln convertible offering plans
HALO•Use of proceeds
The company intends to use a portion of the net offering proceeds to repurchase its outstanding 0.25% convertible bonds due 2027 and 1% convertible bonds due 2028.
The remainder is earmarked for working capital, capital expenditures, potential acquisitions, future additional repurchases of existing convertible bonds, it said.
It also intends to use some proceeds to pay the cost of capped calls to mitigate potential dilution.
Recent trading and analyst view
HALO has about a $12 billion market cap.
Shares finished up 2.1% at $108.44 on Wednesday, up 61% year to date.
The average rating of 10 analysts is "buy"; the median price target is $105, according to LSEG data.
Shares fall after convertible offering plan
Shares of Halozyme Therapeutics (HALO.O) were down 1.8% at $106.51 in after-hours trading as the company seeks a capital raise.
The San Diego, California-based drug delivery firm is offering privately $1.05 billion of convertible bonds due Oct. 1, 2033.
