BridgeBio falls after announcing $500 mln convertible to refinance debt

Blue Owl Capital

25/02/2025 14:13

** Shares of BridgeBio Pharma BBIO.O down 5.8% premarket to $34.15 as co seeks capital raise to refinance debt

** Palo Alto, California-based firm late Mon announced private offering of $500 mln 6-yr convertible bonds

** Co said plans to use portion of net offering proceeds to repay all outstanding borrowings under agreement with lenders and Blue Owl Corporation

** It also intends to use up to $50 mln of any remaining proceeds to buy back its stock from bond purchasers, rest for general purposes

** With ~190 mln shares outstanding, BBIO has ~$6.9 bln market cap, LSEG data shows

** Last week, co posted Q4 rev beat of $5.9 mln, citing strong sales of its rare heart disease drug, acoramidis, sold as Attruby in the U.S. and Beyonttra in the EU

** Through Mon, BBIO shares up 32% to begin 2025

** Avg rating among 16 analysts is "buy"; median PT of $49.50 represents ~37% premium to stock's last close - LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))