- Vroom Inc VRM has priced $550 million 0.75% Convertible Senior Notes due 2028 in a private institutional offering to raise $535.7 million. The offering was upsized from $500 million announced earlier.
- The initial purchasers of the Notes have a 13-day option to procure up to an additional $75 million Notes.
- Vroom would use the offering proceeds for general corporate purposes, including advertising and marketing, expansion of its proprietary logistics operations, increased resources in its customer experience team, technology development, working capital, operating expenses, and capital expenditures.
- A part of the proceeds would also be used to acquire or invest in businesses, products, services, or technologies.
- The notes will be senior, unsecured obligations of Vroom and will accrue interest at a rate of 0.750% per annum, payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2022.
- The notes will be redeemable but only if the last reported sale price per share of Bandwidth’s stock exceeds 130% of the conversion price for a specified period.
- The Notes will be convertible based on an initial conversion rate of 17.8527 shares of Vroom’s stock per $1,000 principal amount of Notes equivalent to an initial conversion price of $56.01 per share, signifying a premium of 40% to the closing price of $40.01 on June 15, 2021.
- The company’s cash and equivalents stood at $966.8 million as of March 31, 2021.
- Price action: VRM shares are trading lower by 0.77% at $39.7 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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