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Halozyme Therapeutics Announces Major Convertible Notes Offering

San Diego, CA, November 6, 2025 – Halozyme Therapeutics, Inc. (NASDAQ: HALO) has revealed the pricing of its significant private offering of convertible senior notes, totaling $650 million. These notes are split into two series: one maturing in 2031 and the other in 2032. This move is expected to play a crucial role in bolstering the company's financial resources to support emerging and established therapies.

Offering Details

The offering includes $650 million worth of 0% convertible senior notes due in 2031 and 0.875% convertible senior notes due in 2032. According to the company's announcement, initial buyers will be granted an option for an extra $100 million of each series, enhancing the total offering potential. These notes are to be marketed exclusively to investors regarded as qualified institutional buyers under the Securities Act of 1933.

Structure and Conversion Terms

The 2031 notes will not carry regular interest, maintaining a principal that does not accrete, while the 2032 notes will accrue interest payable semi-annually at a rate of 0.875%. Initially, both notes have a conversion rate allowing holders to exchange them for shares of common stock at an approximate conversion price of $87.20—which stands at about 27.5% above the last closing price of $68.39 on the announcement date.

Holders of the convertible notes will also benefit from the right to require Halozyme to purchase part or all of their notes if a fundamental change occurs, ensuring an added layer of security. The 2031 notes will reach maturity on February 15, 2031, while the 2032 notes will mature on November 15, 2032. The terms outlined will allow for conversions under specific conditions before their designated maturity dates.

Strategic Use of Proceeds

Halozyme anticipates raising roughly $1.274 billion from this offering, which will be utilized for various strategic initiatives. Key among these is a commitment of $182.7 million to fund capped call transactions tied to the convertible notes. Moreover, the firm plans to allocate around $1.020 billion to repurchase certain existing convertible notes originally due in 2027 and 2028. This aims not only to streamline debts but also to strengthen the company's financial standing.

The remainder of the funds will be directed towards general corporate purposes, including working capital, capital expenditures, and potential acquisitions, positioning Halozyme for future growth while enhancing shareholder value.

Impact on Shareholder Value

The executed note repurchases could induce fluctuations in Halozyme's common stock and the market value of the convertible notes. Current and prospective investors should note that transaction activities related to the notes could potentially influence market dynamics, strengthening the stock's resilience.

Outlook and Future Developments

As Halozyme continues to innovate with its ENHANZE® drug delivery technology, this debt offering signifies an active move towards securing its future in the competitive biopharmaceutical landscape. This offering is set to close on November 12, 2025, subject to customary closing conditions, and the management remains optimistic about future contributions to patient outcomes and industry advancements.

Investors and stakeholders are encouraged to stay tuned for further updates as this transaction unfolds, reflecting Halozyme’s commitment to enhancing patient care through effective therapies.

For more information regarding the offering and Halozyme's ongoing initiatives, please refer to their official announcements or contact their investor relations team.

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