Arrowhead prices upsized $625 million convertible notes and common stock offering
On January 7, 2026, Arrowhead Pharmaceuticals agreed to sell $625 million of 0.00% convertible senior notes due 2032, upsized from $500 million, and 3,100,776 common shares at $64.50 per share. Underwriters exercised their over-allotment options in full on January 8, 2026. The filing says the offerings add shares and potential conversion shares, which could dilute existing shareholders, and that proceeds are for general corporate purposes and may partly prepay its Sixth Street credit facility.
Key points
- Convertible notes: $625 million principal, 0.00% interest, maturing January 15, 2032; initial conversion price about $87.07 per share, a premium of about 35.0% to the $64.50 stock offering price.
- Common stock: 3,100,776 shares at $64.50 each, plus a 456,116-share option exercised in full on January 8, 2026.
- Expected net proceeds with options: about $681.3 million from the notes and $216.6 million from the stock; closings expected January 12, 2026 (notes) and January 9, 2026 (stock).
- About $42.8 million of note proceeds will fund capped call transactions; the remainder is for general corporate purposes, and a portion may prepay Sixth Street Lending Partners loans.
The filing
Written by AI on Nov 8, 2026, 1:17 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on January 08, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.