Ionis prices $700 million convertible notes to refinance 2026 debt

Ionis Pharmaceuticals Inc. (NASDAQ: IONS) priced $700 million in convertible senior notes due 2030 in a private placement to qualified institutional buyers. The pharmaceutical company also granted initial purchasers an option to purchase up to an additional $70 million of notes within 13 days of issuance.

The notes carry a 0% interest rate and will mature on December 1, 2030. The sale is expected to close on November 17, 2025, subject to customary closing conditions. Net proceeds are estimated at approximately $682.8 million, or $751.2 million if the purchaser option is exercised in full, after deducting discounts and expenses.

Ionis plans to use approximately $267.6 million of proceeds to repurchase $200 million in aggregate principal amount of its existing 0% convertible senior notes due 2026 through concurrent transactions. The company intends to use remaining proceeds for additional 2026 note repurchases and general corporate purposes.

The new notes have an initial conversion rate of 10.1932 shares per $1,000 principal amount, equivalent to a conversion price of approximately $98.10 per share. This represents a 35% premium over the November 12 closing price of $72.67 per share of Ionis common stock.

Holders may convert notes before September 1, 2030, only upon satisfaction of specified conditions. After that date until maturity, conversion is permitted at any time. Upon conversion, Ionis may deliver cash, shares, or a combination at its discretion.

Ionis may redeem the notes starting December 6, 2028, if its stock price reaches at least 130% of the conversion price for 20 trading days within any 30-day period. The company concurrently entered separate transactions to repurchase $200 million of its 2026 notes.

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