Jazz Pharmaceuticals closes $1.25 billion exchangeable notes offering
The notes carry a 1.875% coupon and mature in 2032, with proceeds slated for general corporate purposes and a $225 million share buyback.
Jazz Pharmaceuticals disclosed in an 8-K that its subsidiary, Jazz Investments I Limited, finished a private sale of exchangeable senior notes on August 31, 2026. The Bermuda-based subsidiary wrapped up the previously disclosed private placement, reaching $1.25 billion in total notes carrying a 1.875% rate and a 2032 maturity, a figure that reflects the initial purchasers exercising their full option for an extra $150.0 million.1
Jazz estimated net proceeds at approximately $1,226.4 million after fees and expenses.1 The company said it plans to apply the proceeds toward general corporate purposes.1
Alongside the offering, Jazz repurchased about $225.0 million of its ordinary shares from note purchasers in privately negotiated deals, paying $249.29 per share, matching the closing price on August 26, 2026.1 The buyback was funded with cash on hand under the share repurchase program Jazz announced in July 2024, and it reduced the amount still available under that program.1
On terms, interest is payable semiannually each March 15 and September 15, starting March 15, 2027.1 The initial exchange rate is 2.8150 shares per $1,000 in notes, equal to an exchange price near $355.24 per share.1 Jazz may redeem the notes for cash starting September 20, 2029, if shares trade at least 130% above the exchange price for a specified period.1 Under the current terms, exchange could result in issuance of up to 5,014,125 shares, based on a maximum rate of 4.0113 shares per $1,000 in notes, subject to standard antidilution adjustments.1
Written by readthrough’s AI from the linked primary sources and fact-checked against them automatically before publishing. Not investment advice.