Zillow Group Prices Senior Notes, Aids Financial Flexibility
Zacks Investment Research | Sep 03, 2019 09:35PM ET
Zillow Group (NASDAQ:ZG) recently announced plans to price two principle convertible unsecured senior notes worth $500 million, each, to enhance liquidity. The notes are slated to mature in 2024 and 2026, respectively. The notes will be privately offered to institutional buyers qualifying under Rule 144A of the Securities Act of 1933, as amended.
The company will also provide a 30-day option to underwriters of “2024 Notes"and “2026 Notes” to purchase up to an additional $75 million of common stock, each, respectively. These notes, once placed, will be an unsecured senior liability of Zillow Group.
The company will disclose interest rate, conversion rate and other terms after determining the pricing of the offering. However, it has stated that the interest payment will be semi-annual. The offering is subject to customary closing conditions.
Zillow Group intends to utilize the net proceeds from the aforementioned offerings to pay the cost of the capped call transactions. It also intends to utilize the remaining of the net proceeds for general corporate purposes, strategic acquisitions and working capital.
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Shares of Zillow Group have gained 4.7% on a year to-date basis, substantially outperforming the Original post
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