Guardant Health priced an upsized $350 million convertible senior notes due 2033 and a $300 million common‑stock offering, generating $623.5 million in net proceeds. The convertible notes carry a 0% coupon, mature on May 15 2033, and convert at 8.2305 shares per $1,000 with an initial conversion price of $121.50. Initial purchasers can buy an additional $52.5 million in notes. The common‑stock offering consists of 3,333,333 shares at $90.00 each, with an underwriter option for 499,999 additional shares.
The financing is intended to support Guardant’s growth strategy, including repurchasing a portion of its 0% convertible senior notes due 2027, pursuing acquisitions, and funding other strategic initiatives. The company’s recent quarterly results showed revenue of $128.7 million, up 34% year‑over‑year, but a net loss of $133.5 million, underscoring the need for additional capital to sustain R&D and market expansion.
The market reacted sharply to the convertible notes pricing, with the stock falling 7.3% on the day of the announcement. Investors viewed the debt issuance as a potential dilution trigger and a signal that Guardant may need to refinance its existing 2027 notes at more favorable terms. The equity offering, while providing liquidity, also adds to shareholder dilution, contributing to the negative sentiment.
Guardant’s management highlighted that the capital raise will enable the company to accelerate its precision‑oncology platform, expand its commercial footprint, and position itself for future acquisitions. The company’s CEO, Helmy Eltoukhy, noted that the financing will support continued growth in its Guardant360 and Therapy Selection businesses, where coverage gains have driven higher average selling prices.
Analysts noted that the dual‑financing approach reflects Guardant’s need to balance debt and equity to maintain financial flexibility in a competitive market that demands significant investment. The company’s prior capital raises—including a $1 billion convertible senior notes offering in 2020 and a $250 million common‑stock offering in 2023—illustrate a pattern of raising capital to fund expansion while managing debt maturity profiles.
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