Coinbase to raise over $1B via convertible bond sale

Coinbase Global ( NASDAQ: COIN ) has priced its upsized private offering of $1.1B aggregate principal amount of convertible senior notes due 2030. The notes will bear interest of 0.25% per year payable semi-annually in arrears, beginning on October 1, 2024, and will mature on April 1, 2030, unless earlier repurchased, redeemed or converted. The issuance was upsized from the previously announced $1B offering size. The initial purchasers of the notes have been granted a 30-day option to purchase up to an additional $165M of the notes to cover over-allotments. The sale of the notes to the initial purchasers is expected to settle on March 18, 2024, subject to customary closing conditions, and is expected to result in approximately $1.08B (or approximately $1.24B if the initial purchasers exercise their option to purchase additional notes in full) in net proceeds to Coinbase ( COIN ). The company plans to use the net proceeds from the offering to repay at maturity, or repurchase or redeem prior to maturity, from time to time and subject to market conditions, its outstanding 0.50% Convertible Senior Notes due 2026, 3.375% Senior Notes due 2028, and 3.625% Senior Notes due 2031 and for other general corporate purposes. If the initial purchasers exercise their option to purchase additional notes, Coinbase expects to use a portion of the net proceeds from the sale of such additional notes to enter additional capped call transactions. The capped call transactions are expected generally to reduce the potential dilution to Coinbase’s Class A common stock upon any conversion of the notes and/or offset any potential cash payments the company is required to make in excess of the principal amount of converted notes. A portion of the net proceeds may also be used to make investments in and acquisitions of other companies, products or technologies that Coinbase ( COIN ) may identify from time to time. The cryptocurrency exchange's stock has risen over 56% over the past month amid a rally in bitcoin prices. More on Coinbase Coinbase: My Pick For The Most Overvalued U.S. Stock Coinbase Global Inc (COIN) Morgan Stanley Technology, Media and Telecom Conference (Transcript) Coinbase: A Crypto Play With A Catalyst (Rating Upgrade) Cathie Wood captures profits as she sells COIN this week across ARKK, ARKW, and ARKF Coinbase announces proposed private offering of $1B of convertible senior notes due 2030