Ligand Pharmaceuticals Shares Slide on $550 Million Debt Offering

Investors reacted sharply to Ligand Pharmaceuticals’ plan to raise $550 million through convertible senior notes, sending the company’s stock down 8% to $254.01. The capital raise, slated for a private placement, includes an option for initial purchasers to acquire an additional $82.5 million in notes over a 13-day window.

Jun 22, 18:27· Money Talk· 1,031 reads

These unsecured, senior obligations are set to mature on September 15, 2031. Interest payments will begin in March 2027, with disbursements scheduled semiannually every March 15 and September 15.

Management intends to allocate up to $75 million of the proceeds to repurchase common stock directly from note purchasers in private transactions. The remaining capital is earmarked for general corporate needs, specifically targeting investments in complementary businesses, product lines, and emerging technologies.

Ligand Pharmaceuticals Shares Slide on $550 Million Debt Offering

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