Lyft Prices Private Offering Of $400 Mln Convertible Senior Notes

(RTTNews) - Lyft, Inc. (LYFT), a mobility service provider, on Friday announced the pricing of $400 million convertible senior notes due 2029 in a private offering.

The company has granted the initial purchasers of the notes an option to purchase up to additional $60 million of principal notes.

The sale of the notes to the initial purchasers is expected to be settled on February 27, 2024, and will fetch around $389.6 million in net proceeds to Lyft.

Lyft intends to use around $350 million of the net proceeds to repurchase around $356.8 million of its 1.50 percent convertible senior notes due 2025.

The remaining, together with cash on hand, will be used to pay the $41.6 million cost of the capped call transactions.

The notes will bear interest at a rate of 0.625 percent per year with a maturity date of March 1, 2029.

The notes will be convertible at an initial conversion rate of 47.4366 shares of class A shares, per $1,000 principal amount of notes.

This is equivalent to an initial conversion price of around $21.08 per share, which represents a conversion premium of approximately 32.5 percent to the last reported sale price of $15.91 per share of the class A share at the Nasdaq on February 22.