Halozyme completes $1.5 billion convertible notes offering due 2033

Halozyme Therapeutics said on September 22, 2026 that it had closed its previously announced sale of $1,500.0 million aggregate principal amount of 1.50% Convertible Senior Notes due 2033, including $200.0 million purchased through the initial purchasers' exercise of their option to buy additional notes.¹ The notes were issued under an indenture dated the same day with The Bank of New York Mellon Trust Company, N.A. serving as trustee.¹

The company said its net proceeds from the offering came to about $1,471.1 million, after subtracting the initial purchasers' fees and Halozyme's estimated costs of the offering.¹ Of that amount, roughly $187.5 million was used to pay for the capped call transactions.¹ Halozyme also said it plans to use part of the proceeds to buy back about $151.7 million principal amount of its 0.25% convertible notes due 2027 and $220.0 million principal amount of its 1.00% convertible notes due 2028, at a combined repurchase cost of approximately $217.0 million for the 2027 notes and $435.5 million for the 2028 notes, including accrued interest, through privately negotiated transactions.¹

Remaining funds are earmarked for general corporate purposes such as working capital, capital expenditures, potential acquisitions, and possible future repurchases or redemptions of the notes.¹

Interest on the new notes accrues at 1.50% annually, payable twice a year on April 1 and October 1, starting April 1, 2027.¹ The initial conversion rate is 7.1509 shares per $1,000 in principal, equal to a conversion price of about $139.84 per share.¹

Separately, Halozyme entered into capped call transactions tied to the offering, with a cap price of about $208.39 per share, a roughly 90.0% premium over the September 17, 2026 closing price of its stock on Nasdaq.¹ The company said as many as 13,676,100 shares could ultimately be issued upon conversion of the notes, based on the maximum conversion rate of 9.1174 shares per $1,000 in principal.¹