$HALO · HALOZYME THERAPEUTICS, INC.

Halozyme priced a private offering of $1.3 billion in 1.50% convertible senior notes due October 1, 2033, upsized from the originally announced $1.05 billion. The initial conversion price is approximately $139.84 per share, a 27.5% premium to the September 17 closing price of $109.68. The company also entered capped call transactions with a $208.39 cap price (90% premium) and will use a portion of the ~$1.275 billion net proceeds to repurchase approximately $371.7 million of existing 2027 and 2028 convertible notes.

Markets closed — no regular-session reaction yet. Extended-hours last trade at $109.72, essentially flat (+0.04%) vs the $109.68 regular close, suggesting the upsized offering was largely anticipated or the capped call structure mitigated dilution concerns.

A $1.3B convertible offering — upsized by $250M — signals strong institutional demand while the capped call structure and concurrent retirement of near-dated converts show proactive balance-sheet and抗

Convertible note offerings remain a popular low-cost financing tool for mid-to-large cap biopharma firms with strong royalty streams. Halozyme's ENHANZE royalty portfolio provides the cash flow visibility to support this structure.

If the stock exceeds the $208.39 cap price, dilution is not offset and cash settlement exposure remains. Concurrent repurchases of existing notes and associated hedging could create near-term stock volatility.