March 13, 2024
Coinbase Global, Inc. (Nasdaq: COIN), based in San Francisco, California, announced the pricing of $1.1 billion aggregate principal amount of Convertible Senior Notes due 2030 in a private offering to qualified institutional buyers. This offering was increased from the initially announced $1.0 billion. The initial purchasers have a 30-day option to purchase up to an additional $165.0 million principal amount of notes to cover over-allotments. The sale is expected to settle on March 18, 2024, subject to customary closing conditions, resulting in approximately $1.08 billion in net proceeds to Coinbase after deducting initial purchaser discounts and estimated offering expenses.
Project | Latest Raise | Latest Raise | Stage | Total Raise | Category |
Coinbase | Mar 13, 2024 | $1.1B | Post-IPO Debt | 1.8B | Trading |
Coinbase plans to use the net proceeds to repay, repurchase, or redeem its outstanding 0.50% Convertible Senior Notes due 2026, 3.375% Senior Notes due 2028, and 3.625% Senior Notes due 2031. The proceeds will also be used for general corporate purposes, including working capital and capital expenditures, and to fund capped call transactions to offset potential dilution from the conversion of the notes.
The notes are senior, unsecured obligations of Coinbase and will bear interest at 0.25% per year, payable semi-annually. They will mature on April 1, 2030, unless earlier repurchased, redeemed, or converted. The initial conversion rate is 2.9981 shares of Coinbase’s Class A common stock per $1,000 principal amount of notes, equivalent to a conversion price of approximately $333.54 per share.
Coinbase has entered into capped call transactions with certain initial purchasers to reduce the potential dilution to its Class A common stock upon conversion of the notes. These transactions will cover the number of shares underlying the notes, with a cap price initially set at approximately $503.46 per share.
The notes were offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and have not been registered under the Securities Act or state securities laws. This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities.
About Coinbase:
Coinbase is a cryptocurrency exchange and wallet platform that allows users to buy, sell, and store various cryptocurrencies. The company aims to increase economic freedom for over a billion people by providing a trusted platform for trading, staking, safekeeping, spending, and transferring crypto assets. Coinbase also supports on-chain activity and advocates for responsible regulations to extend the benefits of crypto globally.
Website: https://www.coinbase.com/
X Account: https://x.com/coinbase
X Followers today: 6 Million
Comments