Robinhood Markets is offering $2.0 billion in convertible senior notes due 2029 through a private placement. The company also granted initial purchasers an option to buy an additional $200 million in notes.
Management earmarked approximately $300 million of the proceeds to repurchase Class A common stock. The remaining funds will cover capped call transactions and general corporate purposes.
Robinhood shares fell 2.2% in pre-market trading following the announcement. The decline reflects investor concerns over potential dilution and the company’s capital strategy.