The initial conversion price of $246.80 per share represents a 45% premium to the June 8 closing price of $170.21.
The notes will be redeemable after June 20, 2025, but only if the last reported sale price per share of Etsy’s stock exceeds 130% of the conversion price for a specified period.
Etsy has entered into capped call transactions with certain financial institutions to offset the potential stock dilution from any note conversion. The capped call transactions’ initial cap price is $340.42, representing a 100% premium to the June 8 closing price.
The company will utilize a portion of the proceeds to pay for the capped call transactions.
Etsy will utilize a portion of the proceeds to repurchase shares worth $180 million. It will use the remainder for general corporate purposes.
Etsy’s long-term debt stood at $1.3 billion as of Mar. 31, 2021.
Etsy shares gained 123% last year.
Price action: ETSY shares traded higher by 1.05% at $172 in the premarket session on the last check Wednesday.
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