Pagaya Announces Proposed Exchangeable Senior Notes Offering
Pagaya Technologies (NASDAQ: PGY) has announced that its subsidiary, Pagaya US Holding Company , plans to offer $125 million in exchangeable senior notes due 2029. The private offering is aimed at qualified institutional buyers under Rule 144A of the Securities Act. The notes will be senior, unsecured obligations of Pagaya US, with interest payable semi-annually and maturity on October 1, 2029. They will be exchangeable for cash, Pagaya's Class A ordinary shares, or a combination of both, subject to certain conditions.
The notes will be fully guaranteed by Pagaya and redeemable from October 5, 2027. Pagaya US intends to use the net proceeds to repay secured borrowing under its repurchase agreements and for general corporate purposes. The initial purchasers may be granted an option to buy up to an additional $18.75 million in notes. The offer and sale of the notes are not registered under the Securities Act and can only be sold under exemption from registration requirements.
Pagaya Technologies (NASDAQ: PGY) ha annunciato che la sua controllata, Pagaya US Holding Company, prevede di offrire 125 milioni di dollari in obbligazioni senior convertibili con scadenza nel 2029. L'offerta privata è destinata a compratori istituzionali qualificati ai sensi della Regola 144A del Securities Act. Le obbligazioni saranno obbligazioni senior, non garantite di Pagaya US, con interessi pagabili semestralmente e scadenza il 1° ottobre 2029. Saranno convertibili in contanti, azioni ordinarie di Classe A di Pagaya, o una combinazione dei due, soggette a determinate condizioni.
Le obbligazioni saranno interamente garantite da Pagaya e rimborsabili a partire dal 5 ottobre 2027. Pagaya US intende utilizzare i proventi netti per rimborsare prestiti garantiti ai sensi dei suoi accordi di riacquisto e per scopi aziendali generali. Gli acquirenti iniziali potrebbero ricevere un'opzione per acquistare fino a ulteriori 18,75 milioni di dollari in obbligazioni. L'offerta e la vendita delle obbligazioni non sono registrate ai sensi del Securities Act e possono essere vendute solo in esenzione dai requisiti di registrazione.
Pagaya Technologies (NASDAQ: PGY) ha anunciado que su filial, Pagaya US Holding Company, planea ofrecer $125 millones en notas senior canjeables con vencimiento en 2029. La oferta privada está dirigida a compradores institucionales calificados bajo la Regla 144A de la Ley de Valores. Las notas serán obligaciones senior, no garantizadas de Pagaya US, con intereses pagaderos semestralmente y vencimiento el 1 de octubre de 2029. Serán canjeables por efectivo, acciones ordinarias de Clase A de Pagaya, o una combinación de ambas, sujetas a ciertas condiciones.
Las notas estarán totalmente garantizadas por Pagaya y serán redimibles a partir del 5 de octubre de 2027. Pagaya US tiene la intención de utilizar los ingresos netos para pagar préstamos asegurados bajo sus acuerdos de recompra y para fines corporativos generales. Los compradores iniciales pueden recibir la opción de comprar hasta un adicional de $18.75 millones en notas. La oferta y la venta de las notas no están registradas bajo la Ley de Valores y solo pueden ser vendidas bajo exención de los requisitos de registro.
Pagaya Technologies (NASDAQ: PGY)는 그 자회사인 Pagaya US Holding Company가 2029년 만기인 1억 2500만 달러의 전환 가능 후순위 노트를 제공할 계획이라고 발표했습니다. 이 사모 공모는 증권법 제 144A조에 따른 자격 있는 기관 투자자를 대상으로 합니다. 이 노트는 Pagaya US의 후순위, 무담보 채무가 되며, 이자는 반기마다 지급되고 만기는 2029년 10월 1일입니다. 이들은 현금, Pagaya의 클래스 A 일반주식 또는 둘의 조합으로 교환 가능하며, 특정 조건에 따라 달라집니다.
노트는 Pagaya에 의해 전적으로 보증됩니다 및 2027년 10월 5일부터 환매 가능하게 됩니다. Pagaya US는 순수익을 재매입 계약에 따른 담보 대출 상환과 일반 기업 용도로 활용할 계획입니다. 초기 구매자는 최대 1875만 달러의 추가 노트를 구매할 수 있는 옵션을 부여받을 수 있습니다. 이 노트의 제공 및 판매는 증권법에 따라 등록되지 않으며 등록 요건의 면제를 받을 수 있는 경우에만 판매될 수 있습니다.
Pagaya Technologies (NASDAQ: PGY) a annoncé que sa filiale, Pagaya US Holding Company, prévoit d'offrir 125 millions de dollars de billets seniors échangeables arrivant à échéance en 2029. L'offre privée est destinée aux acheteurs institutionnels qualifiés conformément à la règle 144A de la loi sur les valeurs mobilières. Les billets seront des obligations senior non garanties de Pagaya US, avec des intérêts payables semestriellement et une échéance fixée au 1er octobre 2029. Ils seront échangeables contre des espèces, des actions ordinaires de classe A de Pagaya, ou une combinaison des deux, sous réserve de certaines conditions.
Les billets seront entièrement garantis par Pagaya et rachetables à partir du 5 octobre 2027. Pagaya US a l'intention d'utiliser les produits nets pour rembourser des emprunts garantis en vertu de ses contrats de rachat et pour des besoins d'entreprise généraux. Les acheteurs initiaux peuvent se voir accorder une option d'achat allant jusqu'à 18,75 millions de dollars supplémentaires en billets. L'offre et la vente des billets ne sont pas enregistrées en vertu de la loi sur les valeurs mobilières et ne peuvent être vendues que sous exemption des exigences d'enregistrement.
Pagaya Technologies (NASDAQ: PGY) hat angekündigt, dass ihre Tochtergesellschaft, die Pagaya US Holding Company, plant, 125 Millionen Dollar an umwandelbaren Schuldverschreibungen mit Fälligkeit 2029 anzubieten. Das Privatangebot richtet sich an qualifizierte institutionelle Käufer gemäß Regel 144A des Wertpapiergesetzes. Die Schuldverschreibungen werden vorrangige, unbesicherte Verbindlichkeiten von Pagaya US sein, mit halbjährlichen Zinszahlungen und Fälligkeit am 1. Oktober 2029. Sie werden gegen Bargeld, Pagayas Stammaktien der Klasse A oder eine Kombination aus beiden umgewandelt, vorbehaltlich bestimmter Bedingungen.
Die Schuldverschreibungen werden vollständig von Pagaya garantiert und können ab dem 5. Oktober 2027 eingelöst werden. Pagaya US beabsichtigt, die Nettoerlöse zu zurückzahlen gesicherte Kredite aus ihren Rückkaufvereinbarungen und für allgemeine Unternehmenszwecke einzusetzen. Den ursprünglichen Käufern kann die Option eingeräumt werden, bis zu zusätzlich 18,75 Millionen Dollar an Schuldverschreibungen zu erwerben. Das Angebot und der Verkauf der Schuldverschreibungen sind nicht unter dem Wertpapiergesetz registriert und können nur unter einer Ausnahme von den Registrierungsanforderungen verkauft werden.
- Potential to raise up to $143.75 million in capital through the notes offering
- Flexibility in settlement options for note exchanges (cash, shares, or combination)
- Opportunity to repay secured borrowings, potentially improving debt structure
- Increase in long-term debt obligations
- Potential dilution of existing shareholders if notes are exchanged for shares
- Additional interest expenses may impact future profitability
Insights
This proposed offering of
- The notes are unsecured, potentially indicating confidence in Pagaya's financial stability.
- The exchange option provides potential upside for investors if Pagaya's stock performs well.
- The redemption clause after October 2027 gives Pagaya some control over its debt structure.
- The "fundamental change" clause offers some protection to noteholders.
The primary use of proceeds to repay secured borrowings under repurchase agreements suggests Pagaya is restructuring its debt, potentially to improve its financial position or take advantage of more favorable terms. This could be positive for the company's long-term financial health, but investors should monitor how effectively Pagaya manages this new debt obligation.
The legal structure of this offering is noteworthy:
- The private placement under Rule 144A limits the offering to qualified institutional buyers, reducing regulatory burdens but also limiting the potential investor pool.
- The notes are not registered under the Securities Act, which is typical for such offerings but means resale restrictions for investors.
- The guarantee by Pagaya adds a layer of security for noteholders, but it's important to understand the exact terms of this guarantee.
- The "fundamental change" clause provides some protection for noteholders, but the definition in the indenture will be crucial.
Investors should carefully review the full terms of the offering, particularly the conditions for exchange and redemption. The lack of registration under the Securities Act also means investors will need to rely on exemptions for any future resale of the notes or shares received upon exchange.
The notes will be senior, unsecured obligations of Pagaya US, will accrue interest payable semi-annually in arrears and will mature on October 1, 2029, unless earlier repurchased, redeemed or exchanged. Prior to the close of business on the business day immediately preceding July 2, 2029, the notes will be exchangeable at the option of the holders of notes only upon the satisfaction of specified conditions and during certain periods. On or after July 2, 2029 until the close of business on the second scheduled trading day immediately preceding the maturity date, the notes will be exchangeable at the option of the holders of the notes at any time regardless of these conditions. Subject to certain conditions, Pagaya US may settle exchanges of the notes by paying or delivering, as applicable, cash, Class A ordinary shares of Pagaya or a combination of cash and Class A ordinary shares of Pagaya, at the election of Pagaya US. The notes will be fully and unconditionally guaranteed, on a senior unsecured basis, by Pagaya.
The notes will not be redeemable prior to October 5, 2027. The notes will be redeemable, in whole or in part (subject to certain limitations on partial redemptions), for cash at the option of Pagaya US at any time, and from time to time, on or after October 5, 2027 and on or before the 41st scheduled trading day immediately before the maturity date, but only if the last reported sale price per Class A ordinary share of Pagaya exceeds
If a “fundamental change” (as defined in the indenture for the notes) occurs, then, subject to a limited exception, noteholders may require Pagaya US to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.
Pagaya US intends to use the net proceeds from the offering of the notes to repay secured borrowing under its repurchase agreements, for general corporate purposes and to pay related fees and expenses. If the initial purchasers exercise their option to purchase additional notes, then Pagaya US intends to use the additional net proceeds from the sale of the additional notes to further repay secured borrowing under its repurchase agreements.
The offer and sale of the notes, the guarantee and any Class A ordinary shares of Pagaya deliverable upon exchange of the notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes or any Class A ordinary shares of Pagaya deliverable upon exchange of the notes, nor will there be any sale of the notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful.
About Pagaya Technologies
Pagaya (NASDAQ: PGY) is a global technology company making life-changing financial products and services available to more people nationwide, as it reshapes the financial services ecosystem. By using machine learning, a vast data network and an AI-driven approach, Pagaya provides consumer credit and other products for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy.
Cautionary Note On Forward-Looking Statements
This press release includes 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 risks and uncertainties. These forward-looking statements give our expectations or forecasts of future events and can generally be identified by the words “anticipate,” “believe,” “continue,” “can,” “could,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “future,” “strategy,” “might,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strive,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. These statements are based on the Company’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding the completion, timing and size of the proposed offering, the intended use of the proceeds and the terms of the notes being offered as described above. Actual results may differ from those set forth in this press release due to the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the proposed offering and the other risks and uncertainties described in the Company’s filings with the SEC, included under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K and any subsequent filings with the SEC. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements reflect the Company’s views with respect to future events as of the date hereof and are based on assumptions and subject to risks and uncertainties. The Company may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the offer or the notes or its ability to effectively apply the net proceeds as described above. Given these uncertainties, investors should not place undue reliance on these forward-looking statements. The forward-looking statements made as of the date hereof reflect the Company’s current beliefs and are based on information currently available as of the date they are made, and the Company assumes no obligation and does not intend to update these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
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Source: Pagaya Technologies LTD.
FAQ
What is the total amount of exchangeable senior notes Pagaya plans to offer?
When will the Pagaya (PGY) exchangeable senior notes mature?
How does Pagaya (PGY) plan to use the proceeds from the notes offering?
When will the Pagaya (PGY) notes become redeemable?
