Wayfair Closes Offering of $800 Million Senior Secured Notes
Wayfair Inc. (NYSE: W) announced that its subsidiary, Wayfair , has closed a private offering of $800 million in 7.250% senior secured notes due 2029. The notes will mature on October 31, 2029, unless repurchased or redeemed earlier. The company plans to use the net proceeds, along with cash on hand, to repay certain existing convertible senior notes and for general corporate purposes.
Kate Gulliver, CFO and CAO of Wayfair, stated that the company has shown considerable cost discipline over the past two years and views this as a step towards financial maturation. The notes are guaranteed by Wayfair and certain domestic subsidiaries, secured by first-priority liens on assets that also secure the company's senior secured revolving credit facility.
The notes have not been registered under the Securities Act of 1933 and were offered only to qualified institutional buyers and non-U.S. persons in accordance with applicable regulations.
Wayfair Inc. (NYSE: W) ha annunciato che la sua controllata, Wayfair, ha concluso un'offerta privata di $800 milioni in obbligazioni senior garantite con un tasso del 7,250% in scadenza nel 2029. Le obbligazioni scadranno il 31 ottobre 2029, salvo eventuali riacquisti o anticipati riscatti. L'azienda prevede di utilizzare il ricavato netto, insieme alla liquidità disponibile, per rimborsare alcune obbligazioni senior convertibili esistenti e per scopi aziendali generali.
Kate Gulliver, CFO e CAO di Wayfair, ha dichiarato che l'azienda ha dimostrato una notevole disciplina dei costi negli ultimi due anni e considera questo un passo verso una maturazione finanziaria. Le obbligazioni sono garantite da Wayfair e da alcune controllate domestiche, e sono assicurate da diritti di primo grado su attivi che garantiscono anche la linea di credito revolving senior dell'azienda.
Le obbligazioni non sono state registrate ai sensi del Securities Act del 1933 e sono state offerte solo a compratori istituzionali qualificati e a persone non statunitensi in conformità con le normative applicabili.
Wayfair Inc. (NYSE: W) anunció que su subsidiaria, Wayfair, ha cerrado una oferta privada de $800 millones en notas senior garantizadas al 7.250% con vencimiento en 2029. Las notas vencerán el 31 de octubre de 2029, a menos que sean recompradas o redimidas antes. La empresa planea utilizar los ingresos netos, junto con el efectivo disponible, para pagar ciertas notas senior convertibles existentes y para fines corporativos generales.
Kate Gulliver, CFO y CAO de Wayfair, afirmó que la empresa ha demostrado una considerable disciplina de costos en los últimos dos años y considera esto como un paso hacia la madurez financiera. Las notas están garantizadas por Wayfair y ciertas subsidiarias nacionales, y están aseguradas por gravámenes de primera prioridad sobre activos que también garantizan la línea de crédito revolving senior de la empresa.
Las notas no han sido registradas bajo la Ley de Valores de 1933 y fueron ofrecidas únicamente a compradores institucionales calificados y a personas no estadounidenses de acuerdo con las regulaciones aplicables.
Wayfair Inc. (NYSE: W)는 그 자회사 Wayfair가 만기일이 2029년인 $800 백만의 7.250% 담보 선급채권의 사모신청을 마쳤다고 발표했습니다. 이 채권은 2029년 10월 31일에 만기가 되며, 조기 매입이나 상환이 없을 경우에 해당합니다. 회사는 순수익금과 보유 현금을 사용하여 기존의 일부 전환 우선 채권을 상환하고 일반 기업 활동에 사용할 계획입니다.
Wayfair의 CFO이자 CAO인 Kate Gulliver는 회사가 지난 2년간 상당한 비용 절감을 보여주었으며 이를 재정적 성숙을 향한 한 걸음으로 보고 있다고 말했습니다. 이 채권은 Wayfair와 일부 국내 자회사가 보증하고 있으며, 회사의 담보 선급 리볼빙 신용시설을 담보하는 자산에 대한 1순위 담보권으로 보장됩니다.
이 채권은 1933년 증권법에 따라 등록되지 않았으며, 해당 규정에 따라 자격 있는 기관 투자자 및 비미국인에게만 제공되었습니다.
Wayfair Inc. (NYSE: W) a annoncé que sa filiale, Wayfair, a clôturé une offre privée d'800 millions de dollars sous forme de billets senior sécurisés à 7,250% arrivant à échéance en 2029. Les billets arriveront à échéance le 31 octobre 2029, à moins d'être rachetés ou annulés plus tôt. L'entreprise prévoit d'utiliser le produit net, ainsi que les liquidités disponibles, pour rembourser certaines obligations senior convertibles existantes et pour des fins d'entreprise générales.
Kate Gulliver, CFO et CAO de Wayfair, a déclaré que l'entreprise a montré une discipline des coûts considérable au cours des deux dernières années et considère cela comme une étape vers la maturité financière. Les billets sont garantis par Wayfair et certaines filiales domestiques, sécurisés par des privilèges de premier ordre sur des actifs qui garantissent également la ligne de crédit revolving senior de l'entreprise.
Les billets n'ont pas été enregistrés en vertu de la loi de 1933 sur les valeurs mobilières et ont été offerts uniquement aux acheteurs institutionnels qualifiés et aux personnes non américaines conformément aux réglementations applicables.
Wayfair Inc. (NYSE: W) gab bekannt, dass seine Tochtergesellschaft Wayfair eine Privatplatzierung von 800 Millionen US-Dollar in 7,250% Senior-gesicherten Anleihen mit Fälligkeit im Jahr 2029 abgeschlossen hat. Die Anleihen laufen am 31. Oktober 2029 aus, es sei denn, sie werden zuvor zurückgekauft oder eingelöst. Das Unternehmen plant, den Nettoerlös zusammen mit vorhandenen Barmitteln zu verwenden, um bestimmte bestehende wandelbare Senior-Anleihen zurückzuzahlen sowie für allgemeine Unternehmenszwecke.
Kate Gulliver, CFO und CAO von Wayfair, erklärte, dass das Unternehmen in den letzten zwei Jahren erhebliche Kostendisziplin gezeigt hat und dies als Schritt in Richtung finanzieller Reifung ansieht. Die Anleihen sind durch Wayfair und bestimmte inländische Tochtergesellschaften abgesichert und durch erste Hypotheken auf Vermögenswerte gesichert, die auch die Senior-gesicherte revolvierende Kreditfazilität des Unternehmens absichern.
Die Anleihen wurden nicht gemäß dem Securities Act von 1933 registriert und wurden nur qualifizierten institutionellen Käufern und Nicht-US-Bürgern gemäß den geltenden Vorschriften angeboten.
- Successful closing of $800 million senior secured notes offering
- Notes have a maturity date of October 31, 2029, providing long-term financing
- Proceeds to be used for repayment of existing convertible senior notes and general corporate purposes
- Company demonstrates cost discipline and aims to improve cash flow profile
- Notes are secured by first-priority liens on company assets
- Increase in company's debt load with $800 million in new senior secured notes
- High interest rate of 7.250% on the new notes
- Potential dilution for shareholders if convertible notes are converted to equity
Insights
Wayfair's
The first-priority liens securing these notes, coupled with guarantees from Wayfair and its subsidiaries, indicate a strong commitment to lenders, potentially lowering the overall cost of capital. However, investors should note that this increases the company's secured debt load, which could impact financial flexibility.
CFO Kate Gulliver's statement about cost discipline and deleveraging intentions is promising, but investors should closely monitor Wayfair's progress in improving cash flow and meeting debt obligations. The move towards "financial maturation" suggests a shift towards more conservative financial management, which could be viewed positively by the market if executed successfully.
This debt offering provides important insights into Wayfair's financial strategy and market perception. The successful placement of
Investors should consider how this refinancing affects Wayfair's competitive position. By potentially reducing interest expenses and extending debt maturities, Wayfair may gain more operational flexibility to invest in growth initiatives or weather economic uncertainties. However, the impact on the balance sheet and future earnings should be carefully evaluated.
The private placement to qualified institutional buyers suggests a targeted approach to debt management, avoiding dilution for existing shareholders. This move could be seen as a positive signal about Wayfair's ability to access capital markets and manage its financial obligations strategically.
We intend to use the net proceeds from the Notes offering, together with cash on hand, for the repayment of certain of Wayfair's existing convertible senior notes and general corporate purposes.
"Wayfair has demonstrated considerable cost discipline over the past two years, and we're excited for this next step on our journey of financial maturation," said Kate Gulliver, Chief Financial Officer and Chief Administrative Officer, Wayfair. "We're on a solid path to continue deleveraging as we strive to improve our cash flow profile and repay our upcoming maturities over the next year."
The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by Wayfair and certain Wayfair domestic subsidiaries that guarantee the Issuer's senior secured revolving credit facility. The Notes and related guarantees are secured on a first-priority basis by liens on the same assets that secure the Issuer's senior secured revolving credit facility.
The Notes and related guarantees have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction, and may not be offered or sold in
This press release is for informational purposes only and shall not constitute an offer to sell or a solicitation of an offer to buy any securities. Any offer of the Notes and related guarantees was not made to any person in any jurisdiction in which the offer, solicitation or sale is unlawful. This press release also shall not constitute an offer to purchase, a solicitation of an offer to sell, or notice of redemption with respect to any of Wayfair's outstanding convertible notes.
About Wayfair
Wayfair is the destination for all things home, in one inspiring place. With quality finds for every style and budget, and a convenient experience from inspiration to installation, Wayfair empowers everyone, everywhere to create a space that is just right for them.
The Wayfair family of brands includes:
- Wayfair: Every style. Every home.
- AllModern: All of modern, made simple.
- Birch Lane: Classic style for joyful living.
- Joss & Main: The ultimate style edit for home.
- Perigold: The destination for luxury home.
- Wayfair Professional: A one-stop Pro shop.
Wayfair generated
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal and state securities laws. All statements other than statements of historical fact contained in this press release, including statements relating to our deleveraging and capital strategy, statements regarding the anticipated use of the net proceeds from the offering of the Notes and expectations regarding the repayment of Wayfair's outstanding convertible notes, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "continues," "could," "intends," "goals," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "path to," or the negative of these terms or other similar expressions. Forward-looking statements are based on current expectations of future events. We cannot guarantee that any forward-looking statement will be accurate, although we believe that we have been reasonable in our expectations and assumptions. Investors should realize that if underlying assumptions prove inaccurate or that known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Investors are therefore cautioned not to place undue reliance on any forward-looking statements. We believe that these risks and uncertainties include, but are not limited to, adverse macroeconomic conditions, including rising and fluctuating interest rates and inflation, slower growth or the potential for recession, disruptions in the global supply chain, conditions affecting the retail environment for products we sell, and other matters that influence consumer spending and preferences, as well as our ability to plan for and respond to the impact of these conditions; our ability to acquire and retain customers in a cost-effective manner; our ability to increase our net revenue per active customer; our ability to build and maintain strong brands; our ability to manage our growth and expansion initiatives; and our ability to expand our business and compete successfully. A further list and description of risks, uncertainties and other factors that could cause or contribute to differences in our future results include the cautionary statements herein and in our most recent Annual Report on Form 10-K and in our other filings and reports with the Securities and Exchange Commission. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise.
Media Relations Contact:
Tara Lambropoulos
PR@Wayfair.com
Investor Relations Contact:
James Lamb
IR@wayfair.com
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SOURCE Wayfair Inc.
FAQ
What is the amount and interest rate of Wayfair's (W) new senior secured notes offering?
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