Jazz Pharmaceuticals prices $1.1B exchangeable notes offering

Jazz Pharmaceuticals plc announced the pricing of $1.1 billion in exchangeable senior notes due in 2032, a size increase from the initial $1.0 billion offering. The notes, issued by Jazz Investments I Limited, grant initial purchasers the option to buy an additional $150 million within 13 days. Set to mature on September 15, 2032, the notes offer a semiannual interest rate of 1.875% starting March 15, 2027.

The exchange rate is 2.8150 ordinary shares per $1,000 principal amount, with an initial price around $355.24 per share, marking a 42.5% premium compared to the previous Nasdaq sale. The issuer may redeem the notes on or after September 20, 2029, if the share price hits 130% of the exchange price for 20 consecutive trading days.

Jazz estimates net proceeds of approximately $1.079 billion post-expenses, or $1.226 billion if all initial purchasers exercise their option. The funds will be used for general corporate purposes, including the repurchase of around $225 million of ordinary shares from note holders at $249.29 each, as part of the company's share repurchase program initiated in July 2024.