Summary by Moomoo AI
On February 22, 2024, Lyft Inc. entered into a purchase agreement with BofA Securities, Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC to issue $400 million of 0.625% Convertible Senior Notes due in 2029. The initial purchasers were also granted an option to buy an additional $60 million of the notes to cover over-allotments, which they fully exercised the following day. The notes were sold to qualified institutional buyers under Rule 144A, and the proceeds will be used to repurchase existing notes, pay for capped call transactions, and for general corporate purposes including potential acquisitions and strategic transactions. The notes are senior unsecured obligations and will mature on March 1, 2029, with interest payable semiannually. They are convertible under certain conditions, with the conversion rate initially set at 47.4366 shares of Class A Common Stock per $1,000 principal amount of notes. Lyft also entered into capped call transactions to reduce potential dilution from the conversion of the notes. The company announced the pricing of the offering in a press release on February 23, 2024.