ZipRecruiter Announces the Upsize and Pricing of $550 Million of Senior Notes Due 2030

Rhea-AI Summary

ZipRecruiter (NYSE: ZIP) has announced the pricing of $550 million in Senior Notes with a 5.000% interest rate due in 2030, increased from an initial offering of $500 million due to market demand. The offering is set to close on January 12, 2022. Interest will be paid semi-annually, starting July 15, 2022. The funds will be used for general corporate purposes, including capital expenditures and working capital. The notes will be sold privately to qualified institutional buyers under specific regulations and are not registered under the Securities Act.

Positive

• The offering was increased from $500 million to $550 million due to strong market interest.
• The interest rate of 5.000% is competitive for Senior Notes.

Negative

• The offering is subject to customary closing conditions, which introduces uncertainty.
• The reliance on market conditions may affect the successful completion of the offering.

SANTA MONICA, Calif.--(BUSINESS WIRE)-- ZipRecruiter® (NYSE: ZIP) today announced the pricing of $550 million aggregate principal amount of its 5.000% Senior Notes due 2030 (the “notes”) in its previously announced private offering (the “offering”). The aggregate principal amount of the offering was increased from the previously announced offering size of $500 million due to market interest. The offering is expected to close on January 12, 2022, subject to satisfaction of customary closing conditions.

Interest on the notes will be payable in cash semi-annually in arrears, beginning on July 15, 2022, at a rate of 5.000% per year. The notes will mature on January 15, 2030 unless earlier repurchased or redeemed. The notes will be ZipRecruiter’s general unsecured senior obligations.

ZipRecruiter intends to use the net proceeds from the offering for general corporate purposes, which may include capital expenditures, investments and working capital.

The notes were only offered and sold by means of a private offering memorandum to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. The notes have not been, nor 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 the United States, except pursuant to an applicable exemption from such registration requirements.

This announcement is neither an offer to sell nor a solicitation of an offer to buy the notes and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.

About ZipRecruiter

ZipRecruiter® is a leading online employment marketplace that actively connects people to their next great opportunity. ZipRecruiter’s powerful matching technology improves the job search experience for job seekers and helps businesses of all sizes find and hire the right candidates quickly. ZipRecruiter has been the #1 rated job search app on iOS & Android for the past four years and is rated the #1 employment marketplace by G2.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” including, among other things, statements relating to the completion of the offering and the expected use of proceeds from the offering. Statements containing words such as “could,” “believe,” “expect,” “intend,” “will,” or similar expressions constitute forward-looking statements. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, whether or not ZipRecruiter will consummate the offering, market conditions affecting the offering, the anticipated use of the net proceeds of the offering, which could change as a result of market conditions or for other reasons, and the impact of general economic, industry or political conditions in the United States or internationally, including the impacts of the COVID-19 pandemic. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. For information about other potential factors that could affect ZipRecruiter’s business and financial results, please review the “Risk Factors” described in ZipRecruiter’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021, filed with the Securities and Exchange Commission (the “SEC”) and in ZipRecruiter’s other filings with the SEC. Except as may be required by law, ZipRecruiter undertakes no obligation, and does not intend, to update these forward-looking statements after the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220107005540/en/

Investors:

Alex Wellins

The Blueshirt Group, for ZipRecruiter

ir@ziprecruiter.com

Corporate Communications:

Shauna Wynne

Public Relations Manager, ZipRecruiter

press@ziprecruiter.com

Source: ZipRecruiter, Inc.

FAQ

What is the amount of the Senior Notes ZipRecruiter is offering?

ZipRecruiter is offering $550 million in Senior Notes.

What is the expected interest rate on the Senior Notes from ZipRecruiter?

The expected interest rate on the Senior Notes is 5.000%.

When will the offering of Senior Notes by ZipRecruiter close?

The offering is expected to close on January 12, 2022.

What will ZipRecruiter use the proceeds from the Senior Notes for?

The proceeds from the Senior Notes will be used for general corporate purposes, including capital expenditures and working capital.

Are the Senior Notes offered by ZipRecruiter registered under the Securities Act?

No, the Senior Notes have not been, and will not be, registered under the Securities Act.