Jazz Pharmaceuticals said it plans to raise $1.0 billion through a private offering of exchangeable senior notes due 2032, with the option for initial purchasers to buy an additional $150.0 million of notes within 13 days of issuance.
At the same time, the company said it expects to repurchase up to $225.0 million of its ordinary shares in privately negotiated transactions tied to the note sale. The repurchases would be funded with existing cash on hand and would come out of the share repurchase program announced in July 2024, reducing the amount still authorized under that program.
The company said the notes will be exchangeable under certain conditions, with Jazz expected to pay cash up to the principal amount and then settle any remaining exchange obligation with cash, ordinary shares, or a combination of both, at its election. The notes will be fully and unconditionally guaranteed by Jazz Pharmaceuticals on a senior unsecured basis.
Jazz said it intends to use the net proceeds for general corporate purposes.
The planned repurchase price for the shares is expected to equal the closing price on the day of the offering. Jazz said the concurrent buybacks could affect the trading price of its ordinary shares and the effective exchange price of the notes. The market has reacted to these announcements by moving the company's shares -1.67% to a price of $246.495. For the full picture, make sure to review Jazz Pharmaceuticals's 8-K report.
