Robinhood Markets, Inc. announced the completion of its private offering of $2.2 billion in aggregate principal amount of 0.00% convertible senior notes due 2029. The total amount includes the full exercise of the initial purchasers' option to buy an additional $200 million of notes. A portion of the net proceeds was used to repurchase company shares.
Key Details
- Offering Details: The offering consisted of $2.2 billion in 0.00% convertible senior notes maturing on October 1, 2029.
- Conversion Terms: The notes have an initial conversion price of approximately $174.42 per share, representing a 65% premium over the stock's closing price on June 22, 2026.
- Share Repurchase: The company used approximately $290 million of the proceeds to repurchase 2.743 million shares of its Class A common stock at $105.71 per share.
- Hedging Transaction: In connection with the offering, Robinhood entered into capped call transactions, with a cap price of $237.8475 per share, to reduce potential stock dilution from the conversion of the notes.