Loan & DebtJun 23, 2026, 06:07 AM
Robinhood Prices $2.0B 0.00% Convertible Senior Notes Due 2029
AI Summary
Robinhood Markets, Inc. announced the pricing of a private offering of $2.0 billion in 0.00% convertible senior notes due 2029. The company intends to use approximately $290 million of the net proceeds to repurchase its Class A common stock and $112 million to fund capped call transactions, which are expected to reduce potential dilution. The remaining proceeds will be allocated to general corporate purposes, including organic growth investments, potential acquisitions, and capital expenditures. The notes will mature on October 1, 2029, and have an initial conversion price of approximately $174.42 per share, representing a 65.0% premium over the last reported sale price.
Key Highlights
- Private offering of $2.0 billion aggregate principal amount of 0.00% convertible senior notes due 2029.
- Approximately $290 million of net proceeds to repurchase Class A common stock concurrently with the offering.
- Approximately $112 million of net proceeds to fund capped call transactions.
- Initial conversion rate of 5.7332 shares per $1,000 principal amount of notes.
- Initial conversion price of approximately $174.42 per share, a 65.0% premium.
- Capped call transactions cap price at approximately $237.85 per share, a 125% premium.
- Estimated net proceeds of approximately $1,971.8 million, or $2,169.1 million if option exercised in full.
- Remainder of net proceeds for general corporate purposes, including growth investments and acquisitions.
Price Impact
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