Hims & Hers Raises $870 Million in Convertible Notes to Boost Global Growth and AI Integration in Healthcare

Hims & Hers Health, Inc. Prices Upsized $870 Million Convertible Senior Notes Offering to Accelerate Global Expansion and AI Integration SAN FRANCISCO—Hims & Hers Health, Inc. (NYSE: HIMS) has announced the successful pricing of its convertible senior notes offering, totaling $870 million. Originally planned for a smaller amount, the offering was upsized to meet high demand from qualified institutional buyers. These 0.00% interest notes are due to mature in 2030 and were sold under Rule 144A of the Securities Act of 1933. The proceeds from this significant financial move will support the company’s ambitious plans, which include expanding its global footprint and enhancing its healthcare services with advanced artificial intelligence (AI) technologies. By leveraging AI, Hims & Hers aims to improve patient outcomes and operational efficiency, further cementing its position as a leader in telemedicine and personalized health solutions. Founded in 2017, Hims & Hers has quickly become a prominent player in the direct-to-consumer healthcare market. The company offers a wide range of products and services, including prescription medications, over-the-counter treatments, and wellness programs, all accessible through its user-friendly online platform. This latest capital raise underscores the company’s commitment to innovation and growth, as it prepares to tackle new markets and scale its operations. Andrew Dudum, CEO of Hims & Hers, expressed enthusiasm about the offering's success: "The strong interest from investors reflects confidence in our mission to make healthcare more accessible and personalized. This capital will enable us to accelerate our expansion into international markets and deepen our investments in AI, transforming how we deliver care and support our users." The convertible senior notes will allow investors to convert their holdings into Company stock at specified times, depending on certain conditions. This flexibility can benefit both Hims & Hers and its investors, providing additional equity capital if and when needed to fund strategic initiatives. In recent years, Hims & Hers has made significant strides in using data analytics and machine learning to enhance its services. For example, AI algorithms are already being employed to personalize treatment plans, monitor user adherence to medication regimens, and optimize customer service interactions. The injection of fresh capital will help scale these efforts and explore new applications of AI in healthcare, potentially leading to more effective and efficient patient care. The company's expansion strategy also includes opening physical clinics to complement its online platform, particularly in underserved areas. These clinics will offer a more comprehensive suite of healthcare services, including on-site consultations and diagnostic testing, making healthcare more accessible to a broader range of patients. Hims & Hers has been particularly successful in addressing the unique health needs of men and women, with specialized product lines that tackle common issues such as hair loss, sexual health, and skincare. The company’s approach has resonated with consumers, driving rapid growth and earning a strong reputation in the industry. The upsized offering demonstrates the company's robust financial health and its ability to attract significant investment. This capital infusion not only bolsters the company’s financial strength but also positions it to capitalize on emerging opportunities in the healthcare sector, where the integration of digital tools and AI is becoming increasingly important. Hims & Hers is advised by Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, and J.P. Morgan Securities LLC. The transaction is expected to close on December 15, 2023, subject to customary closing conditions. With this substantial financial backing, Hims & Hers is poised to take its healthcare offerings to the next level, driving innovation and accessibility both domestically and abroad. The company's continued focus on AI and global expansion could redefine the landscape of patient care, making high-quality health services more available and tailored to individual needs.