Wayfair (W) Prices $825M Senior Notes In Private Offering
Zacks Investment Research | Aug 20, 2019 06:58AM ET
Wayfair Inc. (NYSE:W) recently announced the pricing of $825 million convertible senior notes due 2026 in a private placement, reflecting an increase of 75 million from the previously announced offering.
The interest rate has been fixed at 1.00% per year, payable semi-annually in arrears on Feb 15 and Aug 15 of each year, and will mature on Aug 15, 2026.
The notes will be offered to qualified institutional buyers only and in accordance with Rule 144A under the Securities Act of 1933, as amended. The company gave the initial purchasers an option to buy up to an additional $113.75 million aggregate principal amount of notes to cover any over allotment. This option will be exercisable for 13 days.
In connection with the pricing of the notes, Wayfair has entered into other privately negotiated capped call transactions with initial purchasers or their affiliates and another financial institution.
The company expects the net proceeds from this offering to be approximately $813.2 million. It also expects to use approximately $126.7 million of the new proceeds to pay the cost of the capped call transactions. The remaining net proceeds will be used for working capital and general corporate purposes.
Wayfair Inc. Price and Consensus
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