BridgeBio Initiates Long Term Debt Management Strategy and Announces Proposed Offering of Convertible Senior Notes to Refinance Senior Secured Debt
BridgeBio Pharma (BBIO) has announced plans to offer $500 million in convertible senior notes due 2031, with an additional $75 million option for initial purchasers. The company will use the proceeds to repay outstanding borrowings under its Financing Agreement with Blue Owl , which accounted for approximately $51.5 million in interest payments in 2024.
The company plans to use up to $50 million to repurchase shares of its common stock from certain note purchasers in private transactions. The notes will mature on March 1, 2031, bearing semi-annual interest, and will be convertible into cash, shares, or a combination thereof. BridgeBio may redeem the notes after March 6, 2028, if the stock price exceeds 130% of the conversion price for a specified period.
This refinancing strategy aims to strengthen the balance sheet without increasing total liabilities, while lowering interest expenses and extending debt maturity.
BridgeBio Pharma (BBIO) ha annunciato piani per offrire 500 milioni di dollari in obbligazioni senior convertibili in scadenza nel 2031, con un'opzione aggiuntiva di 75 milioni di dollari per i compratori iniziali. L'azienda utilizzerà il ricavato per ripagare i prestiti in essere ai sensi del suo Accordo di Finanziamento con Blue Owl, che ha comportato circa 51,5 milioni di dollari in pagamenti di interessi nel 2024.
L'azienda prevede di utilizzare fino a 50 milioni di dollari per riacquistare azioni ordinarie da alcuni acquirenti di obbligazioni in transazioni private. Le obbligazioni scadranno il 1° marzo 2031, con interessi semestrali, e saranno convertibili in contante, azioni o una combinazione di entrambi. BridgeBio potrà riscattare le obbligazioni dopo il 6 marzo 2028, se il prezzo delle azioni supera il 130% del prezzo di conversione per un periodo specificato.
Questa strategia di rifinanziamento mira a rafforzare il bilancio senza aumentare il totale delle passività, riducendo nel contempo le spese per interessi e prolungando la scadenza del debito.
BridgeBio Pharma (BBIO) ha anunciado planes para ofrecer 500 millones de dólares en notas senior convertibles con vencimiento en 2031, con una opción adicional de 75 millones de dólares para los compradores iniciales. La empresa utilizará los ingresos para pagar los préstamos pendientes bajo su Acuerdo de Financiamiento con Blue Owl, que representaron aproximadamente 51,5 millones de dólares en pagos de intereses en 2024.
La empresa planea usar hasta 50 millones de dólares para recomprar acciones de su capital social de ciertos compradores de notas en transacciones privadas. Las notas vencerán el 1 de marzo de 2031, devengando intereses semestrales, y serán convertibles en efectivo, acciones o una combinación de ambos. BridgeBio podrá redimir las notas después del 6 de marzo de 2028, si el precio de las acciones supera el 130% del precio de conversión durante un período específico.
Esta estrategia de refinanciamiento tiene como objetivo fortalecer el balance sin aumentar el total de pasivos, al tiempo que reduce los gastos por intereses y extiende el vencimiento de la deuda.
브리지바이오 제약 (BBIO)는 2031년 만기 convertible senior notes를 5억 달러에 제공할 계획을 발표했으며, 초기 구매자를 위한 추가 옵션으로 7천5백만 달러를 제공합니다. 이 회사는 Blue Owl과의 금융 계약에 따라 남아 있는 대출금을 상환하기 위해 수익금을 사용할 예정이며, 이는 2024년에 약 5천1백50만 달러의 이자 지급을 차지했습니다.
회사는 특정 노트 구매자로부터 자사 보통주를 사들이기 위해 최대 5천만 달러를 사용할 계획입니다. 이 노트는 2031년 3월 1일에 만기가 되며, 반기 이자를 발생시키고, 현금, 주식 또는 이들의 조합으로 전환될 수 있습니다. 브리지바이오는 2028년 3월 6일 이후 주가가 전환 가격의 130%를 초과하면 노트를 상환할 수 있습니다.
이 재정 지원 전략은 총 부채를 증가시키지 않으면서 대차대조표를 강화하고, 이자 비용을 줄이며, 부채 만기를 연장하는 것을 목표로 합니다.
BridgeBio Pharma (BBIO) a annoncé des plans pour offrir 500 millions de dollars en obligations senior convertibles arrivant à échéance en 2031, avec une option supplémentaire de 75 millions de dollars pour les premiers acheteurs. L'entreprise utilisera les produits pour rembourser les emprunts en cours dans le cadre de son Accord de Financement avec Blue Owl, qui a représenté environ 51,5 millions de dollars en paiements d'intérêts en 2024.
L'entreprise prévoit d'utiliser jusqu'à 50 millions de dollars pour racheter des actions ordinaires auprès de certains acheteurs d'obligations dans des transactions privées. Les obligations arriveront à échéance le 1er mars 2031, portant un intérêt semestriel, et pourront être converties en espèces, en actions ou en une combinaison de ces deux options. BridgeBio pourra racheter les obligations après le 6 mars 2028, si le prix des actions dépasse 130 % du prix de conversion pendant une période spécifiée.
Cette stratégie de refinancement vise à renforcer le bilan sans augmenter le total des passifs, tout en réduisant les charges d'intérêts et en prolongeant l'échéance de la dette.
BridgeBio Pharma (BBIO) hat Pläne angekündigt, 500 Millionen Dollar in wandelbaren Senior Notes mit Fälligkeit im Jahr 2031 anzubieten, mit einer zusätzlichen Option von 75 Millionen Dollar für Erstkäufer. Das Unternehmen wird die Erlöse verwenden, um ausstehende Kredite im Rahmen seines Finanzierungsvertrags mit Blue Owl zurückzuzahlen, die im Jahr 2024 etwa 51,5 Millionen Dollar an Zinszahlungen ausmachten.
Das Unternehmen plant, bis zu 50 Millionen Dollar für den Rückkauf von Stammaktien von bestimmten Anleihekäufern in privaten Transaktionen zu verwenden. Die Anleihen laufen am 1. März 2031 aus, haben halbjährliche Zinsen und können in Bargeld, Aktien oder eine Kombination davon umgewandelt werden. BridgeBio kann die Anleihen nach dem 6. März 2028 einlösen, wenn der Aktienkurs einen bestimmten Zeitraum lang 130 % des Umwandlungspreises übersteigt.
Diese Refinanzierungsstrategie zielt darauf ab, die Bilanz zu stärken, ohne die Gesamtverbindlichkeiten zu erhöhen, während die Zinsaufwendungen gesenkt und die Fälligkeit der Schulden verlängert wird.
- Refinancing expected to lower interest expenses
- Elimination of near-term amortization payments
- Extension of debt maturity to 2031
- Removal of restrictive covenants from previous financing agreement
- $50 million share repurchase program announced
- Potential dilution for shareholders if notes are converted to shares
- Increased total debt obligation to $500 million (potentially $575 million)
- New senior unsecured obligations ranking above other unsecured debt
Insights
BridgeBio's debt refinancing strategy represents a sophisticated financial engineering move that could significantly strengthen their balance sheet position. The conversion of $500 million secured debt into convertible senior notes achieves multiple strategic objectives:
The refinancing eliminates $51.5 million in annual interest expenses from the existing facility while extending the maturity to 2031, providing substantial breathing room. The removal of restrictive covenants from the current Financing Agreement enhances operational flexibility, important for a biotech company focused on drug development.
The convertible note structure, while potentially dilutive if converted, offers several advantages:
- Lower interest rates compared to secured debt
- Elimination of near-term amortization payments
- Greater financial flexibility with conversion options
- Improved debt-to-equity profile
The concurrent $50 million share repurchase program is strategically timed to offset potential dilution concerns and demonstrates management's confidence in the company's valuation. This balanced approach to capital management suggests a well-thought-out strategy to optimize the company's financial structure while maintaining operational flexibility.
The conversion terms, allowing for cash, stock, or a combination settlement at the company's discretion, provide valuable optionality in managing future dilution. The redemption option after March 2028 at 130% of the conversion price creates additional flexibility for future capital structure optimization.
- Long term debt management strategy will strengthen the balance sheet without increasing total liabilities
- Refinancing term debt facility lowers interest expense, eliminates near-term amortization payments, and significantly extends debt maturity
PALO ALTO, Calif., Feb. 24, 2025 (GLOBE NEWSWIRE) -- BridgeBio Pharma, Inc. (Nasdaq: BBIO) (the “Company,” “we” or “BridgeBio”) announced today that it intends to offer, subject to market conditions and other factors,
The Company intends to use a portion of the net proceeds from the offering to repay all outstanding borrowings under and terminate its Financing Agreement, dated as of January 17, 2024, with the lenders party thereto and Blue Owl Corporation, as administrative agent, as amended (the “Financing Agreement”), and pay any fees related thereto. The termination of the Financing Agreement, which accounted for approximately
The Company expects the purchase price per share of its common stock in the share repurchases to equal the last reported sale price per share of its common stock on the Nasdaq Global Select Market as of the date of the pricing of the notes. The share repurchases could increase (or reduce the size of any decrease in) the market price of the Company’s common stock prior to, concurrently with or shortly after the pricing of the notes, and could result in a higher effective conversion price for the notes. The Company cannot predict the magnitude of such market activity or the overall effect it will have on the market price of the notes and/or the market price of the Company’s common stock.
The final terms of the notes, including the initial conversion rate, interest rate and certain other terms, will be determined at the time of pricing. The notes will bear interest semi-annually and will mature on March 1, 2031, unless earlier converted, redeemed or repurchased. Prior to December 2, 2030, the notes will be convertible only upon satisfaction of certain conditions and during certain periods. Thereafter, the notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The notes will be convertible at the option of the holders, subject to certain conditions and during certain periods, into cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, with the form of consideration determined at the Company’s election.
The Company may not redeem the notes prior to March 6, 2028. On or after March 6, 2028 and on or before the 41st scheduled trading day immediately before the maturity date of the notes, the Company may redeem for cash all or any portion of the notes, at its option at any time, and from time to time, if the last reported sale price per share of the Company’s common stock exceeds
When issued, the notes will be the Company’s senior unsecured obligations and will rank senior in right of payment to any of the Company’s unsecured indebtedness that is expressly subordinated in right of payment to the notes; equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness and obligations, to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries.
The notes and the shares of common stock issuable upon conversion of the notes, if any, are not being registered under the Securities Act, or the securities laws of any other jurisdiction. The notes and the shares of common stock issuable upon conversion of the notes, if any, may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the Securities Act and any applicable state securities laws.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About BridgeBio
BridgeBio is a new type of biopharmaceutical company founded to discover, create, test, and deliver transformative medicines to treat patients who suffer from genetic diseases. BridgeBio’s pipeline of development programs ranges from early science to advanced clinical trials. BridgeBio was founded in 2015 and its team of experienced drug discoverers, developers and innovators are committed to applying advances in genetic medicine to help patients as quickly as possible.
Forward-Looking Statements
This press release contains forward-looking statements. Statements in this press release may include statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are usually identified by the use of words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “projects,” “remains,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-looking statements, including statements relating to whether we will offer and issue the notes, the terms of the notes, the anticipated use of the net proceeds from the offering and the expectations regarding the effect of the share repurchases, reflect our current views about our plans, intentions, expectations and strategies, which are based on the information currently available to us and on assumptions we have made.
Although we believe that our plans, intentions, expectations and strategies as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a number of risks, uncertainties and assumptions, including, but not limited to, those risks set forth in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the U.S. Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment in which new risks emerge from time to time. These forward-looking statements are based upon the current expectations and beliefs of our management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Except as required by applicable law, we assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Bubba Murarka, EVP Communications
contact@bridgebio.com
(650)-789-8220
Source: BridgeBio Pharma, Inc.
FAQ
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