Revolution Medicines Raises $2 Billion via $1.5B Stock and $500M Convertible Notes
Revolution Medicines priced 10.56 million shares at $142 each, grossing $1.5 billion and upsizing the stock offering from $750 million. It also issued $500 million of 0.50% convertible senior notes maturing in 2033 with a $198.80 conversion price (40% premium), yielding about $1.92 billion in combined net proceeds.
1. Offering Details
Revolution Medicines upsized its common stock offering to 10,563,381 shares at $142.00 per share, raising approximately $1.5 billion, up from a previously announced $750 million. Concurrently, it increased its convertible senior note offering to $500 million from $250 million, with both offerings set to settle in mid-April 2026.
2. Convertible Note Features
The 0.50% convertible senior notes due May 1, 2033, accrue interest semi-annually and carry an initial conversion rate of 5.0302 shares per $1,000 principal, implying a conversion price of $198.80 per share (40% premium over the stock offering price). Noteholders may convert upon specified events before February 1, 2033, and at any time thereafter until maturity, with redemption rights available to the company from May 6, 2030.
3. Use of Proceeds
Net proceeds are estimated at $1,435 million from the stock sale (rising to $1,650.4 million if the underwriters’ 30-day option is exercised) and $486.8 million from the note sale. Funds will support late-stage clinical R&D, potential product commercialization, general administrative costs and capital expenditures.
4. Settlement and Underwriter Options
The common stock offering will settle on April 16, 2026, and the note offering on April 17, 2026, subject to customary closing conditions. Underwriters have a 30-day option to purchase an additional 1,584,506 shares, and the equity and note offerings are each non-contingent on the other’s completion.