LendingTree Repurchases Portion of 2025 Convertible Notes

Rhea-AI Summary

LendingTree, Inc. (NASDAQ: TREE) announced the repurchase of approximately $190 million in Convertible Senior Notes due 2025, paying about $156.4 million in cash. This move is part of their strategic financial management to reduce debt obligations. Following this repurchase, the company anticipates that a portion of existing convertible note hedges will be terminated, potentially leading to secondary market transactions involving the company's common stock. LendingTree remains a leading online financial services marketplace, serving over 120 million customers since its inception.

Positive

• Repurchased $190 million of Convertible Senior Notes, enhancing financial stability.
• Reduced cash outflow by paying approximately $156.4 million for note buyback.
• Strengthens the company's balance sheet, potentially improving shareholder value.

Negative

• None.

CHARLOTTE, N.C., March 6, 2023 /PRNewswire/ -- LendingTree, Inc. (NASDAQ: TREE) (the "Company"), operator of LendingTree.com, the nation's leading online financial services marketplace, announced today it has repurchased approximately $190 million in aggregate principal amount of its outstanding 0.50% Convertible Senior Notes due 2025.  In total, the Company paid approximately $156.4 million in cash through separate and individually negotiated transactions with certain holders to retire the notes. 

In connection with the repurchase of the 2025 notes, the Company expects that a corresponding portion of the existing convertible note hedge and warrant transactions that the Company entered into with certain financial institutions when the notes were issued in July, 2020 will be terminated. In connection with any such termination and the related unwind by such financial institutions of their related hedge positions, the Company expects such financial institutions  and/or their respective affiliates to sell shares of the Company's common stock in secondary market transactions, and/or enter into or unwind various derivative transactions with respect to the Company's common stock.

About LendingTree, Inc.

LendingTree (NASDAQ: TREE) is one of the nation's largest, most experienced online financial platforms, created to give consumers the power to win financially. LendingTree provides customers with access to the best offers on loans, credit cards, insurance and more through its network of over 600 financial partners. Since its founding, LendingTree has helped over 120 million customers obtain financing, save money, and improve their financial and credit health in their personal journeys. With a portfolio of innovative products and tools and personalized financial recommendations, LendingTree helps customers achieve everyday financial wins. LendingTree, Inc. is headquartered in Charlotte, NC. For more information, please visit www.lendingtree.com.

MEDIA CONTACT:

Megan Greuling
Megan.Greuling@lendingtree.com

 

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SOURCE LendingTree, Inc.

FAQ

What is the recent buyback amount of LendingTree's Convertible Senior Notes?

LendingTree repurchased approximately $190 million of its Convertible Senior Notes due 2025.

How much cash did LendingTree spend on the buyback of Convertible Senior Notes?

The company paid approximately $156.4 million in cash for the repurchase.

What impact does the note repurchase have on LendingTree's stock?

The repurchase may lead to reduced debt and strengthen the balance sheet, positively affecting shareholder value.

What is expected to happen after the repurchase of the notes?

A portion of existing convertible note hedges may be terminated, potentially impacting stock transactions in the secondary market.