BridgeBio Prices Offering of $500 Million Convertible Senior Notes due 2031 to Refinance Senior Secured Debt
BridgeBio Pharma (BBIO) has priced a $500 million convertible senior notes offering due 2031, with an additional $75 million option for initial purchasers. The notes, priced at a 1.75% interest rate with a 45% conversion premium, will be convertible into cash, company shares, or a combination thereof.
The company expects net proceeds of approximately $489.5 million (or $563.0 million if the additional option is exercised). These funds will be used to repay outstanding borrowings under its Financing Agreement with Blue Owl , which accounted for $51.5 million in interest payments in 2024. Additionally, $48.3 million will be used to repurchase 1,405,411 shares at $34.35 per share.
The notes will mature on March 1, 2031, with an initial conversion rate of 20.0773 shares per $1,000 principal amount, equivalent to a conversion price of $49.81 per share.
BridgeBio Pharma (BBIO) ha fissato il prezzo di un'offerta di note convertibili senior da 500 milioni di dollari con scadenza nel 2031, con un'opzione aggiuntiva di 75 milioni di dollari per i compratori iniziali. Le note, con un tasso di interesse del 1,75% e un premio di conversione del 45%, saranno convertibili in contante, azioni della società o una combinazione di entrambi.
La società prevede proventi netti di circa 489,5 milioni di dollari (o 563,0 milioni di dollari se l'opzione aggiuntiva viene esercitata). Questi fondi saranno utilizzati per ripagare i prestiti in sospeso ai sensi del suo Accordo di Finanziamento con Blue Owl, che ha comportato pagamenti di interessi di 51,5 milioni di dollari nel 2024. Inoltre, 48,3 milioni di dollari saranno utilizzati per riacquistare 1.405.411 azioni a 34,35 dollari per azione.
Le note scadranno il 1° marzo 2031, con un tasso di conversione iniziale di 20,0773 azioni per ogni 1.000 dollari di valore nominale, equivalente a un prezzo di conversione di 49,81 dollari per azione.
BridgeBio Pharma (BBIO) ha establecido el precio de una oferta de notas convertibles senior por 500 millones de dólares con vencimiento en 2031, con una opción adicional de 75 millones de dólares para los compradores iniciales. Las notas, con una tasa de interés del 1.75% y una prima de conversión del 45%, serán convertibles en efectivo, acciones de la empresa o una combinación de ambos.
La compañía espera ingresos netos de aproximadamente 489.5 millones de dólares (o 563.0 millones de dólares si se ejerce la opción adicional). Estos fondos se utilizarán para pagar préstamos pendientes bajo su Acuerdo de Financiamiento con Blue Owl, que generó pagos de intereses de 51.5 millones de dólares en 2024. Además, 48.3 millones de dólares se utilizarán para recomprar 1,405,411 acciones a 34.35 dólares por acción.
Las notas vencerán el 1 de marzo de 2031, con una tasa de conversión inicial de 20.0773 acciones por cada 1,000 dólares de monto principal, equivalente a un precio de conversión de 49.81 dólares por acción.
브릿지바이오 파마 (BBIO)는 2031년 만기인 5억 달러 규모의 전환형 선순위 채권 발행 가격을 책정했으며, 초기 구매자를 위한 추가 7천5백만 달러 옵션이 있습니다. 이 채권은 1.75%의 이자율과 45%의 전환 프리미엄으로 가격이 책정되며, 현금, 회사 주식 또는 이들의 조합으로 전환할 수 있습니다.
회사는 약 4억 8천9백5십만 달러의 순수익 (추가 옵션이 행사될 경우 5억 6천3백만 달러)을 예상하고 있습니다. 이 자금은 2024년 5천1백5십만 달러의 이자 지급이 발생한 블루 올과의 금융 계약에 따라 미지급 대출을 상환하는 데 사용될 것입니다. 또한, 4천8백3십만 달러는 주당 34.35달러에 1,405,411주를 재매입하는 데 사용될 것입니다.
이 채권은 2031년 3월 1일 만기가 되며, 1,000달러의 원금에 대해 초기 전환 비율이 20.0773주로, 주당 전환 가격은 49.81달러입니다.
BridgeBio Pharma (BBIO) a fixé le prix d'une offre de notes senior convertibles de 500 millions de dollars arrivant à échéance en 2031, avec une option supplémentaire de 75 millions de dollars pour les premiers acheteurs. Les notes, au prix d'un taux d'intérêt de 1,75% avec une prime de conversion de 45%, seront convertibles en espèces, en actions de l'entreprise ou en une combinaison des deux.
La société s'attend à des produits nets d'environ 489,5 millions de dollars (ou 563,0 millions de dollars si l'option supplémentaire est exercée). Ces fonds seront utilisés pour rembourser des emprunts en cours dans le cadre de son Accord de Financement avec Blue Owl, qui a entraîné des paiements d'intérêts de 51,5 millions de dollars en 2024. De plus, 48,3 millions de dollars seront utilisés pour racheter 1 405 411 actions à 34,35 dollars par action.
Les notes arriveront à échéance le 1er mars 2031, avec un taux de conversion initial de 20,0773 actions pour 1 000 dollars de montant principal, équivalant à un prix de conversion de 49,81 dollars par action.
BridgeBio Pharma (BBIO) hat den Preis für ein 500 Millionen Dollar schweres Angebot von wandelbaren vorrangigen Anleihen mit Fälligkeit 2031 festgelegt, einschließlich einer zusätzlichen Option von 75 Millionen Dollar für die Erstkäufer. Die Anleihen, die zu einem 1,75% Zinssatz mit einem 45%igen Wandlungsaufschlag bepreist sind, können in Bargeld, Unternehmensaktien oder eine Kombination davon umgewandelt werden.
Das Unternehmen erwartet Nettoerlöse von etwa 489,5 Millionen Dollar (oder 563,0 Millionen Dollar, wenn die zusätzliche Option ausgeübt wird). Diese Mittel werden verwendet, um ausstehende Darlehen im Rahmen des Finanzierungsvertrags mit Blue Owl zurückzuzahlen, der 2024 Zinszahlungen von 51,5 Millionen Dollar verursachte. Darüber hinaus werden 48,3 Millionen Dollar verwendet, um 1.405.411 Aktien zu einem Preis von 34,35 Dollar pro Aktie zurückzukaufen.
Die Anleihen laufen am 1. März 2031 aus, mit einem anfänglichen Umwandlungssatz von 20,0773 Aktien pro 1.000 Dollar Nennbetrag, was einem Umwandlungspreis von 49,81 Dollar pro Aktie entspricht.
- Reduces interest expense from previous facility
- Eliminates near-term amortization payments
- Extends debt maturity to 2031
- Removes restrictive covenants from previous facility
- Lower 1.75% interest rate compared to previous financing
- Increases total debt by $500M
- Potential future dilution for shareholders upon conversion
- 45% conversion premium may limit immediate conversion pressure
Insights
BridgeBio's $500 million convertible notes offering represents a strategic financial optimization that significantly improves their capital structure. The new 1.75% interest rate marks a substantial reduction from their previous financing arrangement that cost $51.5 million in interest during 2024. This refinancing should save the company approximately $30-35 million annually in interest expenses, meaningfully extending their cash runway.
The elimination of restrictive covenants from the previous credit facility is particularly significant for a clinical-stage biotech company. This provides BridgeBio with substantially greater operational flexibility to pursue business development opportunities, accelerate pipeline investments, or potentially execute strategic M&A without lender approval hurdles that typically accompany secured debt facilities.
The simultaneous $48.3 million share repurchase (approximately 1.4 million shares) signals management confidence while helping offset potential future dilution if notes convert. This transaction effectively pushes potential dilution years into the future at a 45% premium to current share price.
By extending debt maturity to 2031 and eliminating near-term amortization payments, BridgeBio has created a much cleaner balance sheet with reduced refinancing risk. The conversion price of $49.81 represents a significant upside threshold before dilution occurs.
This refinancing comes at an opportune time as BridgeBio advances its clinical programs, particularly acoramidis for ATTR-CM and encaleret for ADH1. The improved financial flexibility and reduced cash burn from lower interest payments will allow management to more aggressively invest in their pipeline without near-term funding constraints that previously existed.
- Refinancing term debt facility lowers interest expense, eliminates near-term amortization payments, and significantly extends debt maturity
- Offering priced at
1.75% interest rate and45% conversion premium
PALO ALTO, Calif., Feb. 25, 2025 (GLOBE NEWSWIRE) -- BridgeBio Pharma, Inc. (Nasdaq: BBIO) (the “Company,” “we” or “BridgeBio”) announced today the pricing of
The Company estimates that the net proceeds from the sale of the notes will be approximately
The Company intends to use approximately
The notes will bear interest at a rate of
The conversion rate will initially be 20.0773 shares of the Company’s common stock per
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 (i) the last reported sale price per share of the Company’s common stock has been at least
Holders of the notes will have the right to require the Company to repurchase all or a portion of their notes at
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 issue 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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