On July 1, 2026 BridgeBio Pharma, Inc. (Nasdaq: BBIO) ("BridgeBio" or the "Company"), a commercial-stage, multi-product biopharmaceutical company focused on developing medicines for genetic conditions, reported that it has entered into an agreement with funds managed by Sixth Street ("Sixth Street") and funds managed by HealthCare Royalty, a business of KKR ("HCRx" and, together with Sixth Street, the "Purchasers") under which the Purchasers have invested up to $1 billion in newly issued convertible preferred equity of the Company.
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The Series A Cumulative Convertible Participating Preferred Stock has the following principal terms:
7.00% initial dividend, payable in kind or in cash at the Company’s election
Initial conversion price of $137.79 per share (more than 100% premium to BridgeBio’s 30-day volume-weighted average price), increasing to $153.10 per share (more than 125% premium) from the fifth anniversary
Permanent equity with no scheduled maturity and no redemption at the holder’s option
BridgeBio may redeem the preferred stock for cash or, in certain circumstances, convert it into common stock, in each case on the terms set forth in the definitive agreements
Sixth Street funded $800M as the lead investor, and HealthCare Royalty funded $133.9M at today’s close of the preferred equity investment.
"We are privileged to be partnering with Sixth Street and HealthCare Royalty at this pivotal time in BridgeBio’s trajectory. This financing represents the best of our dual mission – 1) to put patients first and ensure that we have the resources to do so, and 2) that we execute those responsibilities in a manner that maximizes the economic value of our Firm. Access to this type and quantum of capital ensures we can deliver on the promise of our launching medicines and beyond," said Neil Kumar, Ph.D., Co-Founder and CEO of BridgeBio.
"Sixth Street is proud to support BridgeBio’s mission of bringing meaningful medicines to patients during this exciting stage as the company is on the cusp of potential approval and launch of three important new therapies," said Jeff Pootoolal, Partner at Sixth Street. "Providing flexible capital at scale to leading developers of transformative medicines is central to what we do, and we look forward to a long and productive partnership with the BridgeBio team."
"The BridgeBio management team has a proven track record in launching and developing life-changing therapies, and we are pleased to partner with them on this transaction," said Clarke Futch, Chairman and CEO of HealthCare Royalty. "This capital support reaffirms our belief in the company’s growth and ability to bring to market multiple products that serve high unmet medical needs."
Latham & Watkins LLP served as legal advisor to BridgeBio. Evercore served as financial advisor and Sullivan & Cromwell LLP and Mintz LLP served as legal advisors to Sixth Street. Gibson, Dunn & Crutcher LLP served as legal advisor to HealthCare Royalty.
Additional details about the transaction and the related definitive agreements will be included in a Current Report on Form 8-K to be filed by the Company.
(Press release, BridgeBio, JUL 1, 2026, View Source [SID1234669037])