BridgeBio up after $500 mln convertible debt deal priced

Blue Owl Capital

26/02/2025 14:12

** Shares of BridgeBio Pharma BBIO.O up 0.8% at $34.63 premarket after securing capital raise to refinance debt

** Palo Alto, California-based co announced pricing private offering of $500 mln 1.75% 6-yr convertible bonds

** Initial conversion price of $49.81 represents 45% premium to stock's last close

** BBIO shares on Tues fell 5.2% to $34.35 after co unveiled offering to repay all outstanding borrowings and terminate financing agreement with lenders and Blue Owl Corporation

** Co intends to use ~$48 mln of remaining proceeds to buy back ~1.4 mln shares of its common stock from bond purchasers

** With ~190 mln shares outstanding, BBIO has ~$6.5 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 Tues, stock up 25% YTD

** Median PT of 16 Wall Street analysts covering BBIO is $49.50

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

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