Vacasa Enters Into Note Purchase Agreement With Davidson Kempner Capital Management for the Issuance of $30 Million Senior Secured Convertible Notes
Vacasa (Nasdaq: VCSA), a leading vacation rental management platform, announced the closing of a $30 million senior secured convertible notes financing with Davidson Kempner Capital Management. This agreement allows for an additional $45 million in notes, contingent upon specific conditions. The Initial Notes bear interest at 11.25% annually, payable in kind for the first three years, or 9.75% if paid in cash. They mature on August 7, 2029. The notes are convertible into Vacasa's Class A Common Stock at $4.16 per share. Additionally, Davidson Kempner has the right to designate directors to Vacasa's board. PJT Partners acted as the financial advisor for this transaction.
Vacasa (Nasdaq: VCSA), una piattaforma leader nella gestione di affitti per vacanze, ha annunciato la chiusura di un finanziamento di $30 milioni in note convertibili senior garantite con Davidson Kempner Capital Management. Questo accordo consente un ulteriore finanziamento di $45 milioni in note, subordinato a specifiche condizioni. Le Note Iniziali portano un interesse dell'11,25% annuo, pagabile in natura per i primi tre anni, oppure del 9,75% se pagate in contante. Scadono il 7 agosto 2029. Le note possono essere convertite in azioni ordinarie di Classe A di Vacasa a $4,16 per azione. Inoltre, Davidson Kempner ha il diritto di designare dei direttori nel consiglio di amministrazione di Vacasa. PJT Partners ha agito come consulente finanziario per questa transazione.
Vacasa (Nasdaq: VCSA), una plataforma líder en la gestión de alquileres vacacionales, anunció el cierre de un financiamiento de $30 millones en notas convertibles senior garantizadas con Davidson Kempner Capital Management. Este acuerdo permite un financiamiento adicional de $45 millones en notas, sujeto a condiciones específicas. Las Notas Iniciales devengan un interés del 11.25% anual, pagadero en especie durante los primeros tres años, o un 9.75% si se paga en efectivo. Vencen el 7 de agosto de 2029. Las notas son convertibles en acciones ordinarias Clase A de Vacasa a $4.16 por acción. Además, Davidson Kempner tiene el derecho de designar directores en la junta de Vacasa. PJT Partners actuó como asesor financiero para esta transacción.
Vacasa (Nasdaq: VCSA)는 주요 휴가 임대 관리 플랫폼으로, Davidson Kempner Capital Management와 함께 3천만 달러 규모의 선순위 담보 전환 채권 자금을 마감했다고 발표했습니다. 이 계약은 특정 조건에 따라 추가로 4천5백만 달러의 채권을 허용합니다. 최초의 채권은 연 11.25%의 이자를 발생시키며, 처음 3년 동안은 현물로 지급되거나 현금으로 지급될 경우 9.75%의 이자를 선택할 수 있습니다. 만기일은 2029년 8월 7일입니다. 채권은 Vacasa의 클래스 A 보통주로 주당 4.16달러에 전환될 수 있습니다. 또한, Davidson Kempner는 Vacasa 이사회에 이사를 지정할 권리가 있습니다. PJT 파트너스는 이번 거래의 재무 자문을 맡았습니다.
Vacasa (Nasdaq: VCSA), une plateforme de gestion de locations de vacances de premier plan, a annoncé la clôture d'un financement de 30 millions de dollars en obligations convertibles senior sécurisées avec Davidson Kempner Capital Management. Cet accord permet un financement supplémentaire de 45 millions de dollars en obligations, sous réserve de conditions spécifiques. Les Obligations Initiales portent un intérêt de 11,25 % par an, payable en nature pendant les trois premières années, ou de 9,75 % si payées en espèces. Elles arrivent à maturité le 7 août 2029. Les obligations peuvent être converties en actions ordinaires de Classe A de Vacasa à 4,16 $ par action. De plus, Davidson Kempner a le droit de désigner des administrateurs au conseil d'administration de Vacasa. PJT Partners a agi en tant que conseiller financier pour cette transaction.
Vacasa (Nasdaq: VCSA), eine führende Plattform für die Verwaltung von Ferienvermietungen, gab den Abschluss einer Finanzierung in Höhe von 30 Millionen US-Dollar durch senior gesicherte wandelbare Anleihen mit Davidson Kempner Capital Management bekannt. Diese Vereinbarung ermöglicht zusätzlich 45 Millionen US-Dollar an Anleihen, abhängig von bestimmten Bedingungen. Die ersten Anleihen tragen jährlich 11,25% Zinsen, die in den ersten drei Jahren in Form von Sachleistungen gezahlt werden, oder 9,75%, wenn sie in bar gezahlt werden. Sie laufen am 7. August 2029 aus. Die Anleihen sind wandelbar in die Stammaktien der Klasse A von Vacasa zu einem Preis von 4,16 US-Dollar pro Aktie. Darüber hinaus hat Davidson Kempner das Recht, Direktoren in den Vorstand von Vacasa zu berufen. PJT Partners fungierte als finanzieller Berater für diese Transaktion.
- Vacasa secures $30M in initial financing with potential for an additional $45M.
- Notes bear interest at 11.25%, providing a favorable return for investors.
- Initial conversion price of $4.16 per share for Vacasa’s Class A Common Stock.
- High interest rates on notes increase financial obligations.
- Board influence shifts with Davidson Kempner's director designations.
Insights
This financing deal is a significant development for Vacasa, providing much-needed capital in a challenging market. The
The conversion option at
The addition of Davidson Kempner-designated directors to Vacasa's board marks a pivotal shift in corporate governance. This move, coupled with the potential for up to four board seats, signals a substantial influence over the company's future direction. While this arrangement may bring valuable expertise, it also raises questions about independence and potential conflicts of interest.
The terms of this agreement, including the high-interest convertible notes and board representation, suggest a distressed situation for Vacasa. This level of control typically granted to an investor indicates the company's options and weak negotiating position. Shareholders should closely monitor how this new dynamic affects decision-making and long-term strategy, as it could significantly impact the company's trajectory and shareholder value.
Select Financing Terms
Vacasa’s subsidiary, V-Revolver Sub LLC (the “Issuer”) issued
The Notes bear interest at an annual rate of
Subject to certain conditions, the Notes are convertible into shares of Vacasa’ s Class A Common Stock at the option of Davidson Kempner. The initial conversion price of the Notes is
Beginning on August 7, 2027, the Issuer may redeem the Notes, in whole or in part, at a redemption price equal to
Board Appointments
In connection with the issuance of the Initial Notes, Davidson Kempner has designated two individuals to Vacasa’s board of directors, with the potential to add up to two additional directors in certain circumstances.
Additional Details
PJT Partners acted as the exclusive financial advisor and placement agent to Vacasa in connection with the transaction.
Additional details regarding the Notes, including further information on the financing terms and board appointments, can be found on the Current Report Form 8-K filed by Vacasa with the Securities and Exchange Commission on August 8, 2024.
About Vacasa
Vacasa is the leading vacation rental management platform in
For more information, visit https://investors.vacasa.com.
About Davidson Kempner Capital Management
Davidson Kempner Capital Management LP is a global investment management firm with over 40 years of experience and a focus on fundamental investing with a multi-strategy approach. Davidson Kempner has more than
For more information, visit www.davidsonkempner.com.
Forward-Looking Statements
Certain statements made in this press release are considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements reflect Vacasa's current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements.
Due to known and unknown risks, actual results may differ materially from Vacasa's expectations and projections. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: Vacasa's ability to execute its business plan and achieve the expected benefits of its reorganization and other cost saving measures it may take in the future; any indebtedness Vacasa may incur from time to time (including the Initial Notes issued on August 7, 2024 and any Additional Notes), Vacasa's cash position and its ability to raise additional capital or generate the significant capital necessary to expand its operations and invest in new offerings, including that additional financing (including Additional Notes) may not be available on acceptable terms or at all, or could be dilutive to Vacasa’s stockholders or impose additional restrictive debt covenants on its activities; Vacasa's ability to achieve profitability; Vacasa's ability to manage the impacts the reorganization will have on its systems, process and controls, including its ability to address competitive challenges, manage its employee base, or maintain its corporate culture; Vacasa's past growth not being indicative of its future prospects; Vacasa's ability to compete in its industry; Vacasa's ability to attract and retain homeowners and guests; Vacasa's ability to provide high-quality customer service; Vacasa's ability to develop new or enhanced offerings and services; Vacasa's ability to maintain relationships with distribution partners; Vacasa's ability to cost-effectively drive traffic to its platform; Vacasa's ability to maintain and enhance its brand and reputation, and avoid negative publicity that could damages its brand; the safety of Vacasa's platform; Vacasa's ability to manages its international operations; Vacasa's ability to consummate or successfully integrate recent and future acquisitions; Vacasa's ability to attract and retain capable management and employees; increased personnel costs or labor shortages; declines or disruptions to the travel and hospitality industries or general economic downturns; the effects of seasonal and other trends on Vacasa's results of operations; Vacasa's ability to obtain adequate insurance coverage for the needs of its business; any future impairment of Vacasa's long-lived assets or goodwill; significant fluctuations in Vacasa's results of operations from quarter to quarter and year to year as a result of seasonality and other factors; operational metrics subject to inherent challenges in measurement and real or perceived inaccuracies; upticks or downturns in bookings are not immediately reflected in Vacasa's results of operations; Vacasa's ability to manage funds held on behalf of customers; Vacasa's expectations regarding its tax liabilities and the adequacy of its reserves; any undetected errors on Vacasa's platform; Vacasa's reliance on third-party service providers in connection with key aspects of its platform and operations; Vacasa's ability to adapt to changes in technology and the evolving demands of homeowners and guests; Vacasa's ability to protect its intellectual property and its data; Vacasa's use of "open source" software; Vacasa's use of artificial intelligence in its business and risks related to cyberattacks, data security breaches, or other security incidents; Vacasa's ability to stay in compliance with laws and regulations, including tax laws, that currently apply or may become applicable to its business both in
You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of Vacasa's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (the "SEC"), its Form 10-Q filed with the SEC on May 10, 2024, as well as its other filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.
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Vacasa Contacts
Investor Relations Contact
ir@vacasa.com
Press Contact
pr@vacasa.com
Davidson Kempner Contact
Press Contact
DKMedia@dkp.com
Source: Vacasa
FAQ
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