Hims & Hers Health, Inc. announced the issuance of $402.5 million in aggregate principal amount of 0.00% Convertible Senior Notes due 2032. The total amount includes a $350 million initial offering and the full exercise of a $52.5 million option by the initial purchasers. In connection with the offering, the company entered into capped call transactions to reduce potential stock dilution from the conversion of the notes.
Key Details
- Offering Details: The total offering consists of $402.5 million in senior, unsecured notes, issued in a private offering to qualified institutional buyers. The issuance was completed on May 21, 2026.
- Note Terms: The notes will not bear regular interest and are set to mature on June 1, 2032, unless earlier converted, redeemed, or repurchased.
- Conversion Terms: The notes have an initial conversion rate of 33.8590 shares of Class A common stock per $1,000 principal, which equates to an initial conversion price of approximately $29.53 per share.
- Capped Call Transactions: The company spent approximately $36.7 million on capped call transactions, which are expected to reduce potential share dilution upon conversion of the notes. The cap price is initially set at approximately $50.15 per share.