Ligand Pharmaceuticals announced a proposed private placement of $550 million of convertible senior notes due 2031, with an option for initial purchasers to buy up to an additional $82.5 million of notes within 13 days. The notes will be senior unsecured obligations paying interest semiannually starting March 15, 2027. The company plans to use up to $75 million of the proceeds to repurchase shares from certain note purchasers in privately negotiated transactions, with the remainder allocated for general corporate purposes including strategic investments and the previously announced acquisition of Xoma Royalty. Ligand also expects to enter into convertible note hedge and warrant transactions to reduce potential dilution from note conversions, though the warrant transactions could be dilutive if the share price exceeds the warrants' strike price.
Ligand Pharmaceuticals IncorporatedProposes $550M convertible notes offering; proceeds partly for share repurchases and acquisition, but dilution risk from warrants.
XOMA Royalty CorporationLigand plans to use proceeds for previously announced acquisition of Xoma Royalty, indicating deal progress.