Match Group Announces Repurchase of Exchangeable Senior Notes

Rhea-AI Summary

Match Group (NASDAQ: MTCH) has completed a significant financial maneuver by repurchasing approximately $414 million of 0.875% exchangeable senior notes due 2022 for around $1.5 billion. The repurchase was facilitated through privately negotiated agreements and funded by proceeds from a direct offering of over 5.5 million shares at $158.83 each, alongside the termination of certain hedging transactions and a private offering of $500 million in senior notes due 2031. Post-repurchase, approximately $104 million of these notes remain outstanding.

Positive

• Completed repurchase of 0.875% exchangeable senior notes, boosting financial stability.
• Enhanced shareholder value through strategic debt management.
• Successfully raised $1.5 billion through direct offering, supporting the repurchase.

Negative

• The substantial cash outflow of $1.5 billion could impact liquidity.
• Remaining $104 million in outstanding exchangeable notes may pose ongoing financial commitments.

DALLAS, Oct. 4, 2021 /PRNewswire/ -- Match Group (NASDAQ: MTCH) announced today that it has repurchased approximately $414 million aggregate principal amount of 0.875% exchangeable senior notes due 2022 (the "2022 Exchangeable Notes") for approximately $1.5 billion, including accrued and unpaid interest on the 2022 Exchangeable Notes repurchased, pursuant to privately negotiated agreements with a limited number of current holders of such 2022 Exchangeable Notes (the "Exchangeable Notes Repurchase"). The 2022 Exchangeable Notes were issued by Match Group FinanceCo, Inc. ("FinanceCo"), a wholly owned subsidiary of Match Group.

Match Group funded the Exchangeable Notes Repurchase using (i) the net proceeds from its concurrent registered direct offering of 5,534,098 shares of its common stock at a price of $158.83 per share, (ii) the net proceeds from its and FinanceCo's concurrent termination of certain note hedges and warrant transactions and (iii) a portion of the net proceeds from the private unregistered offering of $500 million aggregate principal amount of 3.625% senior notes due 2031 by Match Group Holdings II, LLC, an indirect wholly owned subsidiary of Match Group.

Following the Exchangeable Notes Repurchase approximately $104 million aggregate principal amount of 2022 Exchangeable Notes remain outstanding.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Match Group

Match Group (NASDAQ: MTCH), through its portfolio companies, is a leading provider of digital technologies designed to help people make meaningful connections. Our global portfolio of brands includes Tinder®, Match®, Meetic®, OkCupid®, Hinge®, Pairs™, PlentyOfFish®, OurTime®, Azar®, Hakuna Live™, and more, each built to increase our users' likelihood of connecting with others. Through our trusted brands, we provide tailored services to meet the varying preferences of our users. Our services are available in over 40 languages to our users all over the world.

Forward-Looking Statements

This press release contains forward-looking statements regarding the future performance of Match Group, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, Match Group's ability to consummate the transactions described herein. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Match Group are contained in its filings with the SEC, including its reports on Forms 10-K, 10-Q and 8-K. Match Group undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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SOURCE Match Group

FAQ

What is the purpose of Match Group's recent repurchase of exchangeable senior notes (MTCH)?

The repurchase aims to enhance financial stability and manage debt effectively.

How much did Match Group spend on the repurchased exchangeable senior notes (MTCH)?

Match Group spent approximately $1.5 billion to repurchase $414 million of the notes.

What was the funding source for Match Group's exchangeable notes repurchase (MTCH)?

The repurchase was funded by proceeds from a direct share offering and the termination of certain hedging transactions.

What is the impact of the exchangeable notes repurchase on Match Group's stock price (MTCH)?

The repurchase is expected to enhance shareholder value and potentially boost stock price through reduced debt.

How many exchangeable senior notes remain outstanding after the repurchase by Match Group (MTCH)?

Approximately $104 million of exchangeable senior notes remain outstanding after the repurchase.