Evotec raises €116M through convertible bonds to fund transformation
What's the deal? Evotec SE, a Hamburg-based life science company listed on both NASDAQ and the Frankfurt Stock Exchange, has placed €116.1 million in senior unsecured convertible bonds due 2033. The bonds, announced on May 12, 2026, are convertible into new or existing shares and were placed without pre-emption rights for existing shareholders.
The bonds carry a 2.625% annual interest rate, paid semi-annually, and will be repaid at maturity at 110% of principal — implying a yield to maturity of 3.882%. The initial conversion price of €6.5313 represents a 37.5% premium above the reference share price of €4.75.
BNP Paribas and Goldman Sachs Bank Europe SE acted as joint global coordinators, with HSBC Continental EuropeDealroom has a profile for this one. Try Dealroom → and Morgan StanleyDealroom has a profile for this one. Try Dealroom → joining as bookrunners. Settlement is expected around May 21.
Why now? Evotec plans to use the proceeds to fund "Project Horizon," its transformation programme aimed at strengthening the company's operating model and enabling long-term value creation. The seven-year bond structure — with an investor put option after five years — gives Evotec a substantial runway to execute the overhaul.
A simultaneous placement of existing shares was also conducted on behalf of certain bond buyers who wished to hedge their market risk through short sales. Evotec receives no proceeds from that share placement.
What could go wrong? The bonds dilute existing shareholders if converted, with a lock-up period of just 90 days post-settlement. At a share reference price of €4.75, the stock is trading at levels that suggest the market has yet to price in a successful transformation.
Convertible debt also adds leverage to Evotec's balance sheet. If Project Horizon fails to deliver the promised operational improvements, the company faces repaying bondholders at 110% of principal — a meaningful cash obligation in 2033.
The signal: Evotec is classified as an "early growth" stage company on Dealroom despite being publicly listed on two exchanges, underscoring how deeply its recent troubles have reset market expectations. The convertible bond syndicate — BNP Paribas, Goldman Sachs, HSBC Continental Europe, and Morgan Stanley, all corporate investors — lends heavyweight credibility, but the 37.5% conversion premium and 110% redemption price suggest those banks needed generous terms to get the deal done.
Read more: evotec.com
