On May 18, 2026, Hims & Hers Health (NYSE: HIMS) priced an upsized $350 million offering of 0.00% convertible senior notes due 2032, increasing the deal from the $300 million it had floated only a day earlier. The notes carry no interest — a "zero-coupon" structure that lets the company borrow at an effective cost of nothing in exchange for potential future dilution — and convert at roughly $29.53 per share, a 32.5% premium to the $22.29 close on the pricing date. The initial purchasers exercised their option for an additional $52.5 million in full on May 19, and the notes settled on May 21.

Why It Matters

This is the clearest financial proof that the largest U.S. sexual-health telehealth player intends to become a global consumer-health platform, and it is willing to tap capital markets to do it. For the sex-tech and men's-health sector, a $350 million war chest behind the Eucalyptus deal means Hims' ED, testosterone and intimacy franchises are about to compete in Australia, the UK, Germany and Japan — markets where incumbents like Eucalyptus's own brands and local telehealth players have run unchallenged. The zero-coupon, premium-conversion structure also shows that even after a rocky quarter, institutional investors will still underwrite Hims' expansion ambitions cheaply.

The capital raise is explicitly tied to Hims' biggest swing yet: the proposed $1.15 billion acquisition of Australian digital-health platform Eucalyptus, announced in February 2026 and expected to close mid-year. Eucalyptus operates consumer telehealth brands across Australia, the UK, Germany, Japan and Canada, giving Hims an instant international footprint to plug its sexual-health, GLP-1, hair and hormone lines into. Roughly $240 million of the Eucalyptus price is due in cash at close, with the remainder structured as deferred and earn-out payments through 2029 — so the notes "preserve financial flexibility" rather than fund the deal dollar-for-dollar.

Hims also carved out about $32 million of proceeds for capped-call transactions, a hedge that pushes the effective conversion ceiling up to roughly $50.15 per share and softens dilution for existing shareholders if the stock rallies. Net proceeds came to approximately $338.5 million. Latham & Watkins advised Hims on the offering.

The financing lands during a turbulent stretch for the company: a Q1 2026 earnings miss on May 11 sent shares down 13%, and the stock has whipsawed on GLP-1 partnership and pricing-war headlines all spring. Raising debt at a zero coupon — even with conversion risk — signals that management would rather protect its balance sheet than spend down cash reserves heading into a cross-border integration.

Sources

Update — 2026-05-29

Initial entry — story first created.