BridgeBio Pharma (BBIO) Plans $550 Million Convertible Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Financing Plan: BridgeBio Pharma announced its intention to privately place $550 million of convertible senior notes with qualified institutional buyers, with initial purchasers expected to receive an additional $82.5 million option, thereby enhancing the company's capital structure and liquidity.
- Use of Proceeds: The net proceeds from this offering are intended for repurchasing, settling conversion obligations related to its 2.50% convertible senior notes due 2027, and for general corporate purposes, indicating the company's focus on debt management.
- Share Buyback: BridgeBio also plans to use up to $82.5 million of cash on hand to repurchase shares from certain note purchasers, demonstrating proactive measures in capital allocation to enhance shareholder value.
- Market Reaction: Following the announcement, BridgeBio's stock fell 4.00% in after-hours trading to $74.64, reflecting a cautious market sentiment regarding the financing plan, which may impact investor confidence.
Analyst Views on BBIO
Wall Street analysts forecast BBIO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBIO is 84.20 USD with a low forecast of 64.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
16 Buy
0 Hold
0 Sell
Strong Buy
Current: 79.110
Low
64.00
Averages
84.20
High
100.00
Current: 79.110
Low
64.00
Averages
84.20
High
100.00
About BBIO
BridgeBio Pharma, Inc. is a biopharmaceutical company. It discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases. Its pipeline of development programs ranges from early science to advanced clinical trials, which includes Attruby, an oral small molecule near-complete transthyretin (TTR) stabilizer, for the treatment of cardiomyopathy of wild-type or variant transthyretin-mediated amyloidosis (ATTR-CM); Beyonttra for the treatment of TTR Amyloidosis; Low-dose Infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor (TKI) for the treatment of children with achondroplasia and hypochondroplasia; Encaleret, an oral small molecule antagonist of the calcium sensing receptor (CaSR) that it is developing for the treatment of Autosomal Dominant Hypocalcemia Type 1 (ADH1), and BBP-418, for the treatment of Limb Girdle Muscular Dystrophy Type 2I. It also conducting a Phase 1/2 study (CANaspire) for BBP-812 for Canavan disease.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
