Eventbrite Announces Repurchase of a Portion of its Existing 5% Convertible Senior Notes due 2025
Eventbrite (NYSE: EB) has announced plans to repurchase $120 million of its existing 5.000% Convertible Senior Notes due 2025. The repurchase, set to settle on August 22, 2024, will be executed through privately negotiated transactions with select noteholders. Eventbrite will pay approximately $120.2 million in cash, including about $1.4 million in accrued and unpaid interest. Following this repurchase, $30 million of the 2025 Notes will remain outstanding. The company's previously established capped call transactions related to these notes will remain in effect. This move demonstrates Eventbrite's proactive approach to managing its debt obligations and potentially improving its financial position.
Eventbrite (NYSE: EB) ha annunciato piani per riacquistare 120 milioni di dollari dei suoi esistenti Obbligazioni Convertibili Senior al 5.000% in scadenza nel 2025. Il riacquisto, previsto per il 22 agosto 2024, sarà eseguito tramite transazioni privatamente negoziate con selezionati portatori di obbligazioni. Eventbrite pagherà circa 120,2 milioni di dollari in contante, inclusi circa 1,4 milioni di dollari di interessi maturati e non pagati. Dopo questo riacquisto, resteranno in circolazione 30 milioni di dollari delle Obbligazioni 2025. Le transazioni di capped call già stabilite dall'azienda in relazione a queste obbligazioni rimarranno attive. Questa mossa dimostra l'approccio proattivo di Eventbrite nella gestione delle proprie obbligazioni debitorie e il potenziale miglioramento della propria posizione finanziaria.
Eventbrite (NYSE: EB) ha anunciado planes para recomprar 120 millones de dólares de sus existentes Bonos Senior Convertibles al 5.000% que vencen en 2025. La recompra, que se establecerá el 22 de agosto de 2024, se llevará a cabo a través de transacciones negociadas de forma privada con selectos tenedores de bonos. Eventbrite pagará aproximadamente 120,2 millones de dólares en efectivo, incluyendo unos 1,4 millones de dólares en intereses devengados y no pagados. Tras esta recompra, quedarán pendientes 30 millones de dólares de los Bonos 2025. Las transacciones de opción de compra ya establecidas por la compañía en relación con estos bonos permanecerán en vigencia. Este movimiento demuestra el enfoque proactivo de Eventbrite en la gestión de sus obligaciones de deuda y la posible mejora de su posición financiera.
Eventbrite (NYSE: EB)는 2025년에 만기가 도래하는 기존의 5.000% 전환 상환 채권을 1억 2천만 달러에 재매입할 계획을 발표했습니다. 이 재매입은 2024년 8월 22일에 정산될 예정이며, 특정 채권 소유자와의 비공식 협상을 통해 실행될 것입니다. Eventbrite는 약 1억 2천 20만 달러를 현금으로 지불할 예정이며, 이에는 약 140만 달러의 발생하였으나 미지급된 이자가 포함됩니다. 이번 재매입 이후에 3000만 달러의 2025년 채권이 잔존할 것입니다. 이 회사가 이전에 설정한 이 채권 관련 캡 콜 거래는 유효할 것입니다. 이번 조치는 Eventbrite의 부채 의무를 관리하고 재무 상황을 개선하려는 적극적인 접근 방식을 보여줍니다.
Eventbrite (NYSE: EB) a annoncé des projets de rachat de 120 millions de dollars de ses Obligations Convertibles Senior existantes à 5,000% échues en 2025. Ce rachat, prévu pour le 22 août 2024, sera réalisé par le biais de transactions négociées de manière privée avec certains détenteurs d'obligations. Eventbrite paiera environ 120,2 millions de dollars en espèces, y compris environ 1,4 million de dollars d'intérêts échus et impayés. Après ce rachat, 30 millions de dollars des Obligations 2025 resteront en circulation. Les transactions de capped call précédemment établies par l'entreprise en relation avec ces obligations resteront en vigueur. Ce mouvement démontre l'approche proactive d'Eventbrite pour gérer ses obligations de dette et potentiellement améliorer sa position financière.
Eventbrite (NYSE: EB) hat Pläne bekannt gegeben, 120 Millionen Dollar seiner bestehenden 5,000% wandelbaren Senior Notes mit Fälligkeit im Jahr 2025 zurückzukaufen. Der Rückkauf, der am 22. August 2024 stattfinden soll, wird durch privat ausgehandelte Transaktionen mit ausgewählten Note-Inhabern durchgeführt. Eventbrite wird etwa 120,2 Millionen Dollar in bar zahlen, einschließlich etwa 1,4 Millionen Dollar an aufgelaufenen und nicht bezahlten Zinsen. Nach diesem Rückkauf werden 30 Millionen Dollar der 2025 Notes ausstehen. Die zuvor eingerichteten capped call Transaktionen der Gesellschaft in Bezug auf diese Notes bleiben weiterhin gültig. Dieser Schritt zeigt Eventbrights proaktive Herangehensweise an das Management seiner Schuldenverpflichtungen und das potenzielle Verbesserung seiner finanziellen Position.
- Reduction of outstanding debt by $120 million
- Potential improvement in financial flexibility
- Maintenance of capped call transactions, possibly providing downside protection
- Cash outlay of $120.2 million, potentially impacting liquidity
- Remaining $30 million in convertible notes still outstanding
Insights
Eventbrite's decision to repurchase
This debt repurchase by Eventbrite signals confidence in the company's financial position and future prospects. The events industry has been recovering post-pandemic and this move suggests Eventbrite anticipates strong cash flows to support operations without relying heavily on debt financing. The decision to maintain the capped call transactions is intriguing, potentially indicating that the company still sees upside potential in its stock price. For investors, this could be seen as a positive indicator of management's outlook. However, it's important to consider the broader market conditions and Eventbrite's competitive position in the evolving events landscape to fully gauge the long-term implications of this financial maneuver.
Upon completion of the above-mentioned repurchases, the aggregate principal amount of the 2025 Notes that will remain outstanding will be
Eventbrite previously entered into capped call transactions with certain financial institutions in connection with the issuance of the 2025 Notes. All of these transactions are expected to remain in effect notwithstanding the repurchases.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the 2025 Notes in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.
About Eventbrite
Eventbrite is a global events marketplace that serves event creators and event-goers in nearly 180 countries. Since its inception, Eventbrite has been at the center of the experience economy, transforming how people organize and attend events. The company was founded by Julia Hartz, Kevin Hartz and Renaud Visage, with a vision to build a self-service platform that would make it possible for anyone to create and sell tickets to live experiences. With over 300 million tickets distributed for over 5 million events in 2023, Eventbrite is where people worldwide discover new things to do or new ways to do more of what they love. Eventbrite has also earned industry recognition as a top employer with special designations that include a coveted spot on Fast Company’s prestigious The World’s 50 Most Innovative Companies and Fast Company’s Brands That Matter lists, the Great Place to Work® Award in the
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements related to the 2025 Notes to be repurchased, the completion, timing and size of the repurchases and the existing capped call transactions. In some cases, forward-looking statements can be identified by terms such as “may,” “will,” “appears,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions. Such statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from those indicated in the forward-looking statements, including but not limited to the satisfaction of the closing conditions related to the repurchases and market conditions, and those more fully described in Eventbrite’s filings with the Securities and Exchange Commission, including Eventbrite’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Further information on potential risks that could affect forward looking statements will be included in the subsequent periodic and current reports and other filings that Eventbrite makes with the Securities and Exchange Commission from time to time. Investors are cautioned not to place undue reliance on these statements. Actual results could differ materially from those expressed or implied. All forward-looking statements are based on information and estimates available to Eventbrite at the time of this release, and are not guarantees of future events. Except as required by law, Eventbrite assumes no obligation to update any of the statements in this press release.
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Eventbrite Investor Relations
investors@eventbrite.com
Source: Eventbrite, Inc.
FAQ
How much of its 2025 Convertible Senior Notes is Eventbrite (EB) repurchasing?
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