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Etsy (NASDAQ:ETSY) has priced a private offering of $650M aggregate principal amount of 1.00% convertible senior notes due 2030.
The notes will accrue interest payable semiannually at a rate of 1.00% per year.
The company also granted the initial purchasers a 13-day option to purchase up to an additional $50M of the notes.
The sale is expected to close on June 16, 2025, subject to customary closing conditions.
The notes will mature on June 15, 2030, unless earlier converted, redeemed or repurchased. The initial conversion rate will be 11.6570 shares of Etsy’s common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $85.79 per share).
Etsy expects net proceeds of ~$639.3M, or ~$688.5M if the initial purchasers exercise their option to purchase additional notes in full. The company plans to use around $150M of the proceeds to repurchase shares of its common stock, and the remainder for general corporate purposes.
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