Ligand Amends Credit Deal for $550M Notes, Plans $75M Stock Buyback
LGND has more than doubled off its 52-week low of $110 on elevated volume (3.5× avg).
Summary
Ligand Pharmaceuticals amended its Citibank credit agreement to facilitate the previously announced $550 million convertible senior notes offering. The company will use proceeds for a convertible note hedge to limit dilution and plans to repurchase up to $75 million of common stock from note holders. This financing also introduces new minimum consolidated EBITDA covenants, set at $100 million for fiscal year 2027 and $150 million thereafter.
At the time of this announcement, LGND was trading at $262.17 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $5.3B. The 52-week trading range was $110.00 to $276.20. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Wiseek News.