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Ligand prices $650M debt offering

Ligand Pharmaceuticals Inc. priced its offering of $650 million of 0.75% convertible senior notes due May 15, 2023.

The company granted an overallotment option to initial buyers for an additional $100 million of notes.

Ligand said the conversion rate for the notes will initially be 4.0244 shares per $1,000 principal amount, which is equivalent to an initial conversion price of about $248.48 per common share.

The conversion rate is subject to adjustment under the terms of the notes.

San Diego, Calif.-based Ligand will use $43.6 million of the net proceeds to pay the cost of certain convertible note hedge transactions and intends to use roughly $49.7 million to repurchase about 260,000 shares from purchasers of the notes in privately negotiated transactions.

Ligand expects to use the remaining proceeds to acquire or invest in complementary businesses, companies, products and technologies and for working capital and other general corporate purposes.

The sale of the notes is expected to close on May 22, subject to customary closing conditions.