Business
Opendoor Technologies Inc. Prices Upsized $850 Million Convertible Senior Notes Offering
SAN FRANCISCO, Aug. 18, 2021 (GLOBE NEWSWIRE) -- Opendoor Technologies Inc. (Nasdaq: OPEN) (“Opendoor”), a leading digital platform for residential real
About this update from Opendoor Technologies Inc
[{"type":"text","content":"SAN FRANCISCO, Aug. 18, 2021 (GLOBE NEWSWIRE) -- Opendoor Technologies Inc. (Nasdaq: OPEN) (“Opendoor”), a leading digital platform for residential real estate, today announced the pricing of its offering of $850,000,000 aggregate principal amount of 0.25% convertible senior notes due 2026 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering size was increased from the previously announced offering size of $750,000,000 aggregate principal amount of notes. The issuance and sale of the notes are scheduled to settle on August 20, 2021, subject to customary closing conditions. Opendoor also granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date when the notes are first issued, up to an additional $127,500,000 principal amount of notes. The notes will be senior, unsecured obligations of Opendoor and will accrue interest at a rate of 0.25% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on February 15, 2022. The notes will mature on August 15, 2026, unless earlier repurchased, redeemed or converted. Before February 15, 2026, noteholders will have the right to convert their notes only upon the occurrence of certain events. From and including February 15, 2026, noteholders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Opendoor will settle conversions by paying cash up to the aggregate principal amount of the notes to be converted and paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the notes being converted based on the applicable conversion rate(s). The initial conversion rate is 51.9926 shares of common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $19.23 per share of common stock. The initial conversion price represents a premium of approximately 30% over the last reported sale price of $14.795 per share of Opendo...