Guardant Health prices $500M convertible notes to refinance 2027 debt
What's the deal? Guardant Health, a precision oncology company listed on the Nasdaq, has priced $500 million in 0% convertible senior notes due 2032. The private offering, sold to qualified institutional buyers, is set to settle on November 16, 2026. Initial purchasers hold an option to buy up to $50 million more.
The terms: The notes carry no regular interest and mature May 15, 2032. The initial conversion price is about $208.95 per share — a 35% premium over Guardant's November 11 closing price of $154.78.
What's the endgame? Net proceeds are roughly $489.3 million, or $538.3 million if the option is fully exercised. Guardant plans to spend about $501.7 million repurchasing its 0% notes due 2027 and to fund capped calls designed to limit dilution if the new notes convert.
Why now? This is a refinancing, not an emergency raise. Guardant held $1.1 billion in cash and investments at the end of its third quarter, when revenue rose 36% year over year to $361 million.
What could go wrong? The company raised its expected full-year free-cash-flow burn to $205–$220 million even as it lifted its 2026 revenue outlook to $1.36–$1.37 billion. Extending maturities to 2032 buys time, but conversion ultimately depends on the share price climbing well above today's level.
The signal: At $500 million, the deal sits in roughly the 90th percentile of US post-IPO convertible rounds in health over the past four years. It reflects how cash-rich but still-burning diagnostics firms are using convertibles to push out debt and preserve flexibility while they invest to meet rising demand.
Read more: marketscreener.com, Financial Times
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