Ligand rises after offering $400 million convertible bonds

Shares of Ligand Pharmaceuticals LGND.O, which invests in commercial and late-stage drug assets, rise 1% to $148.50 premarket

LGND late Monday announced pricing of $400 million of convertible bonds due 2030

Stock closed down 2% at $147.01 on Monday after LGND unveiled the offering

Initial conversion price of $194.79 apiece represents roughly 32.5% premium over the last reported sale price

Portion of proceeds will be used to pay for convertible bond hedge transactions and to repurchase shares from certain bond purchases

Remaining proceeds may be used for general purposes, including investing in complementary businesses and products

All seven brokerages covering the stock rate it "buy" or higher; median PT $162 - data compiled by LSEG

As of last close, LGND stock up 37.2% YTD