Coinbase Global Inc., the largest cryptocurrency exchange in the United States, plans to raise $1 billion by offering convertible senior notes to qualified institutional buyers.
The funds are raised to repay existing debts and general corporate needs.
In a statement released on Tuesday, Coinbase said the notes maturing in 2030 will be sold through a private offering to institutional investors.
The crypto exchange is also expected to grant a 30-day option to allow the purchase of up to an additional $150 million of the securities to cover over-allotments.
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The notes will be convertible into cash, shares of Coinbase Class A common stock, or a combination, at the company’s option.
“The notes will be senior, unsecured obligations of Coinbase, will accrue interest payable semiannually in arrears and will mature on April 1, 2030, unless earlier repurchased, redeemed or converted. The interest rate, initial conversion rate and other terms of the notes are to be determined by price of the offer,” the company statement said.
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Coinbase intends to use the net proceeds of 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 by 2031.
Other general corporate purposes may include working capital and capital expenditures, and paying the cost of the restricted call transactions, the company added.
Coinbase shares were down about 3.6% after regular trading hours. The stock has jumped 47% this year.
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Published: 13 Mar 2024, 07:42 IST