aibioTelix Pharmaceuticals prices upsized US$600 million convertible bonds due 2031
Tickers TLX
Telix raised its convertible notes offering from US$550 million to US$600 million and will use most of the money to buy back its 2029 convertible bonds. The reference price for the conversion terms was set at an 8.0 per cent discount to the closing share price.
Key facts
- Company
- Telix Pharmaceuticals Limited (ASX: TLX)
- News type
- Financings
- Primary source
- Telix Pharmaceuticals Limited 6-K (2026-04-14)
The offering
Telix Pharmaceuticals Limited said on April 14, 2026 that it had priced and upsized its offering of 1.50 per cent convertible notes due 2031, from US$550 million to US$600 million, because of strong demand. The notes are issued by Telix Pharmaceuticals (Investments) Inc., a wholly owned subsidiary, and guaranteed by Telix and Telix Pharmaceuticals (US) Inc. Interest is paid quarterly from July 22, 2026. The notes mature on or about April 22, 2031, unless they are redeemed, repurchased or converted first. Investors have a put option at the end of year 3. The notes are direct, unconditional, unsubordinated and unsecured obligations.
The company says net proceeds, after commissions and expenses, will go to repurchase its existing convertible bonds due 2029. Any money raised above that amount goes to general corporate purposes. A concurrent reverse bookbuild for the 2029 bonds is expected to buy back about A$637 million of the A$650 million outstanding. The announcement says the repurchase cancels more than 85 per cent of the existing bonds and that Telix intends to redeem the rest. The purchase price for the repurchase is not stated. It will be set by the bookbuild.
The chief executive, Dr. Christian Behrenbruch, said: "The refinance of the existing Convertible Bonds represents our proactive approach to capital management." Telix also says the notes are non-dilutive until any future conversions occur.
Who is named
J.P. Morgan Securities plc is sole bookrunner on the notes and sole dealer manager on the concurrent repurchase. J.P. Morgan also ran a delta placement of ordinary shares, which helps investors hedge their positions in the notes. The announcements name no legal counsel, no trustee and no paying agent for the notes.
A stock borrow arrangement is also part of the deal. Elk River Holdings Pty Ltd, as trustee for The Behrenbruch Family Trust, has entered into a stock lending agreement with an affiliate of J.P. Morgan covering 15 million ordinary shares. The loan has an 11-month term. The announcement says Dr. Behrenbruch holds an indirect interest in the trust, and that the arrangement helps implement the offering.
Pricing and the reference price
The delta placement cleared at A$14.22 per ordinary share. That is an 8.0 per cent discount to Telix's closing price of A$15.45 on April 14, 2026, and a 3.2 per cent discount to the five-day volume weighted average price of A$14.69. The clearing price became the reference price for the initial conversion price.
The initial conversion price is US$13.85, about A$19.55 a share. That is a conversion premium of 37.5 per cent over the reference price, not over the closing price. The launch terms had set the premium range at 35.0 to 37.5 per cent. The conversion price is subject to anti-dilution adjustments, including for dividends paid by Telix.
The business and the balance sheet
Telix describes itself as a global biopharmaceutical company focused on radiopharmaceuticals for oncology and rare diseases. It is headquartered in Melbourne and has operations in the United States, the United Kingdom, Brazil, Canada, Europe and Japan. Its shares are listed on the Australian Securities Exchange and on the Nasdaq Global Select Market.
Its annual report for 2025, filed on February 20, 2026, shows revenue of $803.8 million for 2025, up from $516.6 million in 2024. Research and development expense rose to $171.2 million from $127.9 million. The company reported a net loss of $7.1 million for 2025, after net income of $33.7 million in 2024.
Cash used in operations was $17.3 million in 2025, compared with $27.5 million of cash provided by operations in 2024. Year-end cash and cash equivalents fell to $141.9 million at December 31, 2025, from $440.0 million a year earlier. The announcements do not say what cash the company will hold after the repurchase.
What comes next
Settlement of the offering and the repurchase is expected on April 22, 2026, subject to customary conditions. The notes are to be listed on the Singapore Exchange Securities Trading Limited and offered only outside the United States under Regulation S. Telix says it intends to redeem the remaining 2029 bonds, but the announcement gives no date for that redemption.