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SoFi Technologies | 8-K: Sofi Technologies, Inc. Closed Its Previously Announced Private Offering of Convertible Senior Notes Due 2029 in an Aggregate Principal Amount of $862.5 Million

SEC announcement ·  Mar 8 17:26
Summary by Moomoo AI
On March 8, 2024, SoFi Technologies, Inc. completed its private offering of convertible senior notes due in 2029, raising $862.5 million, which includes the full exercise of the initial purchasers' option to buy additional notes worth $112.5 million on March 6, 2024. The net proceeds from the offering amounted to approximately $845.3 million after initial discounts and before costs related to capped call transactions and other expenses. The notes, unsecured and unsubordinated, will pay interest semi-annually at a rate of 1.25% and are set to mature on March 15, 2029, unless repurchased, redeemed, or converted earlier. Noteholders have various conditions under which they can convert their notes, with the initial conversion rate set at 105.8089 shares of common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of...Show More
On March 8, 2024, SoFi Technologies, Inc. completed its private offering of convertible senior notes due in 2029, raising $862.5 million, which includes the full exercise of the initial purchasers' option to buy additional notes worth $112.5 million on March 6, 2024. The net proceeds from the offering amounted to approximately $845.3 million after initial discounts and before costs related to capped call transactions and other expenses. The notes, unsecured and unsubordinated, will pay interest semi-annually at a rate of 1.25% and are set to mature on March 15, 2029, unless repurchased, redeemed, or converted earlier. Noteholders have various conditions under which they can convert their notes, with the initial conversion rate set at 105.8089 shares of common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of about $9.45 per share. SoFi also entered into capped call transactions to reduce potential dilution from the conversion of notes and entered into exchange agreements to exchange $600 million of its 2026 notes for common stock. The company has filed the necessary documents with the SEC, including the Indenture and forms of the capped call and unwind agreements.
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