Ligand Announces Pricing of $400 Million Convertible Senior Notes Offering

How might the new convertible notes affect the company’s cash flow and liquidity profile over the next 3‑5 years? What are the market’s expectations for conversion (i.e., expected conversion rate) and its impact on future earnings per share? Are there any covenants, restrictions, or anti‑dilution provisions that could affect existing shareholders or future financing? How will the $400 million convertible senior notes issuance affect Ligand’s current stock price and volatility? What are the conversion terms (conversion price, ratio, and reset provisions) and how might they dilute existing shareholders? What is the interest rate, maturity date, and any redemption or call features of the notes? How will the proceeds be allocated (e.g., debt repayment, acquisitions, capital expenditures, or general corporate purposes)? How does the pricing (yield and conversion premium) compare to recent comparable convertible issuances in the sector? What impact will this financing have on Ligand’s leverage ratios, credit rating, and covenant compliance? What are the potential arbitrage opportunities for convertible‑bond traders and how does the conversion premium compare to the current stock price? How does this offering compare to Ligand’s previous financing rounds in terms of size, terms, and market reception? What are the tax and accounting implications of the convertible notes for both the company and investors?