Upstart Announces Pricing of Offering of $425,000,000 of 1.00% Convertible Senior Notes Due 2030
Upstart Holdings (NASDAQ: UPST) has priced $425 million of 1.00% Convertible Senior Notes due 2030 in a private offering to qualified institutional buyers. The notes will bear 1.00% annual interest, payable semi-annually, and mature on November 15, 2030. The initial conversion rate is 10.8702 shares per $1,000 principal amount, equivalent to approximately $91.99 per share. The company expects net proceeds of about $414.8 million, which will be used for general corporate purposes, including potential debt repayment. An additional option for $75 million in notes was granted to initial purchasers.
Upstart Holdings (NASDAQ: UPST) ha emesso 425 milioni di dollari di Obbligazioni Convertibili Senior al 1,00% con scadenza nel 2030 in un’offerta privata per acquirenti istituzionali qualificati. Le obbligazioni porteranno un interesse annuale dell'1,00%, pagabile semestralmente, e scadranno il 15 novembre 2030. Il tasso di conversione iniziale è di 10,8702 azioni per ogni 1.000 dollari di capitale, equivalente a circa 91,99 dollari per azione. L'azienda prevede ricavi netti di circa 414,8 milioni di dollari, che saranno utilizzati per scopi aziendali generali, inclusa la potenziale restituzione del debito. È stata concessa un'opzione aggiuntiva per 75 milioni di dollari in obbligazioni agli acquirenti iniziali.
Upstart Holdings (NASDAQ: UPST) ha fijado $425 millones de Notas Senior Convertibles al 1.00% con vencimiento en 2030 en una oferta privada a compradores institucionales calificados. Las notas llevarán un interés anual del 1.00%, pagadero semestralmente, y vencerán el 15 de noviembre de 2030. La tasa de conversión inicial es de 10.8702 acciones por cada $1,000 de monto principal, equivalente a aproximadamente $91.99 por acción. La empresa espera ingresos netos de alrededor de $414.8 millones, que se utilizarán para fines corporativos generales, incluyendo el posible pago de deudas. Se otorgó una opción adicional por $75 millones en notas a los compradores iniciales.
업스타트 홀딩스(NASDAQ: UPST)는 자격을 갖춘 기관 구매자를 대상으로 2023년 만기 4억 2천5백만 달러 규모의 1.00% 전환형 선순위 채권을 발행했습니다. 해당 채권은 연 1.00%의 이자를 지급하며, 반기별로 이자를 지급하고 2030년 11월 15일에 만기가 됩니다. 초기 전환 비율은 1,000달러의 원금당 10.8702주로, 주당 약 91.99달러에 해당합니다. 이 회사는 약 4억 1천4백80만 달러의 순 수익을 기대하고 있으며, 이는 일반 기업 목적, 잠재적인 부채 상환 등을 포함하여 사용될 예정입니다. 최초 구매자에게는 7천5백만 달러 상당의 추가 채권 옵션이 부여되었습니다.
Upstart Holdings (NASDAQ: UPST) a fixé le prix de 425 millions de dollars de titres senior convertibles à 1,00% arrivant à échéance en 2030 lors d'une offre privée destinée aux acheteurs institutionnels qualifiés. Les titres porteront un intérêt annuel de 1,00%, payable semestriellement, et arriveront à échéance le 15 novembre 2030. Le taux de conversion initial est de 10,8702 actions pour 1 000 dollars de montant principal, ce qui équivaut à environ 91,99 dollars par action. La société s'attend à des recettes nettes d'environ 414,8 millions de dollars, qui seront utilisées à des fins générales d'entreprise, y compris le remboursement potentiel de la dette. Une option supplémentaire de 75 millions de dollars en titres a été accordée aux premiers acheteurs.
Upstart Holdings (NASDAQ: UPST) hat in einer privaten Platzierung für qualifizierte institutionelle Käufer 425 Millionen Dollar an 1,00% wandelbaren Senior-Anleihen mit Fälligkeit im Jahr 2030 emittiert. Die Anleihen unterliegen einem jährlichen Zins von 1,00%, zahlbar halbjährlich, und haben eine Fälligkeit am 15. November 2030. Der anfängliche Umrechnungskurs beträgt 10,8702 Aktien pro 1.000 Dollar Nennbetrag, was etwa 91,99 Dollar pro Aktie entspricht. Das Unternehmen erwartet Nettoerlöse von etwa 414,8 Millionen Dollar, die für allgemeine Unternehmenszwecke, einschließlich möglicher Schuldenrückzahlungen, verwendet werden sollen. Den Erstkäufern wurde zudem eine zusätzliche Option über 75 Millionen Dollar an Anleihen eingeräumt.
- Successful raising of $425 million through convertible notes offering
- Low interest rate of 1.00% on the convertible notes
- 32.50% conversion premium over current stock price
- Net proceeds of $414.8 million strengthening balance sheet
- Potential dilution for existing shareholders upon conversion
- Additional debt burden on company's balance sheet
- Interest payment obligations will increase operating expenses
Insights
This convertible note offering represents a significant financial move for Upstart, raising
The flexible conversion terms and extended maturity until 2030 provide Upstart with breathing room while maintaining strategic optionality. The company's ability to settle conversions in cash, stock, or a combination thereof offers valuable flexibility in managing future dilution. With
The successful pricing of this convertible note offering demonstrates continued institutional confidence in Upstart's AI-driven lending platform despite recent market volatility. The
The offering's structure balances Upstart's need for growth capital with shareholder interests, as the high conversion premium and distant maturity minimize immediate dilution concerns. This financing strengthens Upstart's competitive position in the evolving fintech lending space.
The notes will be senior, unsecured obligations of Upstart. The notes will bear interest at a rate of
The notes will be convertible at an initial conversion rate of 10.8702 shares of Upstart’s common stock per
Prior to the close of business on the business day immediately preceding August 15, 2030, the notes will be convertible at the option of the noteholders only upon the satisfaction of specified conditions and during certain periods. On or after August 15, 2030 until the close of business on the second scheduled trading day preceding the maturity date, the notes will be convertible at the option of the noteholders at any time regardless of these conditions. Conversions of the notes will be settled in cash, shares of Upstart’s common stock, or a combination thereof, at Upstart’s election.
Upstart estimates that the net proceeds from the offering will be approximately
The notes were only offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act by means of a private offering memorandum. Neither the notes nor the shares of Upstart’s common stock potentially issuable upon conversion of the notes, if any, have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.
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Source: Upstart Holdings, Inc.
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