Robinhood Markets, Inc. announced the pricing of a $2.0 billion private offering of 0.00% convertible senior notes, which will mature on October 1, 2029. The company expects to use the net proceeds to fund a concurrent share repurchase, enter into capped call transactions to reduce potential stock dilution, and for general corporate purposes.
Key Details
- Offering Size: $2.0 billion in aggregate principal amount, with an option for purchasers to buy up to an additional $200 million. The offering is expected to close on June 25, 2026.
- Use of Proceeds: Estimated net proceeds of $1.97 billion will be used to repurchase approximately $290 million of Class A common stock, pay $112 million for capped call transactions, and fund corporate activities like growth investments or potential acquisitions.
- Conversion Terms: The notes have an initial conversion price of approximately $174.42 per share, representing a 65% premium over the stock's closing price on June 22, 2026. The capped call transactions are intended to offset dilution up to a share price of approximately $237.85.