Arrowhead Pharmaceuticals announced the pricing of $625 million convertible senior notes due 2032 and 3,100,776 shares of common stock.
The notes will mature on January 15, 2032, with an initial conversion price of approximately $87.07 per share.
Arrowhead granted underwriters a 30-day option to purchase additional notes and shares of common stock.
Offering Details
$625 million aggregate principal amount of 0.00% convertible senior notes due 2032 and 3,100,776 shares of common stock priced at $64.50 per share.
Conversion Terms
Initial conversion rate of 11.4844 shares per $1,000 principal amount with a premium of 35.0% over the public offering price.
Redemption Information
Notes will be redeemable for cash at Arrowhead's option if the stock price exceeds 130% of the conversion price for a specified period.
- The net proceeds from the note offering are estimated to be $608.2 million, increasing to $681.3 million if the underwriters fully exercise their option.
- The common stock offering is expected to generate approximately $188.3 million, potentially reaching $216.6 million with full underwriter exercise.
Arrowhead Pharmaceuticals' successful pricing of offerings indicates investor interest and potential for significant capital inflow. The company's strategic approach to financing aligns with growth objectives.