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Upstart Holdings, Inc. Announces Pricing of Offering of $575,000,000 of 0.25% Convertible Senior Notes Due 2026
SAN MATEO, Calif.--(BUSINESS WIRE)-- Upstart Holdings, Inc. (“Upstart”) (NASDAQ: UPST) today announced the pricing of $575,000,000 aggregate principal amount
About this update from Upstart Holdings, Inc.
[{"type":"text","content":" SAN MATEO, Calif.--(BUSINESS WIRE)--\nUpstart Holdings, Inc. (“Upstart”) (NASDAQ: UPST) today announced the pricing of $575,000,000 aggregate principal amount of Convertible Senior Notes due 2026 (the “notes”) in a private offering (the “offering”) to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Upstart also granted the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date the notes are first issued, up to an additional $86,250,000 aggregate principal amount of the notes. The sale of the notes to the initial purchasers is expected to settle on August 20, 2021, subject to customary closing conditions, and is expected to result in approximately $561.2 million in net proceeds to Upstart after deducting the initial purchasers’ discount and estimated offering expenses payable by Upstart (assuming no exercise of the initial purchasers’ option to purchase additional notes).\n\nThe notes will be senior, unsecured obligations of Upstart. The notes will bear interest at a rate of 0.25% per year. Interest will be 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 redeemed, repurchased, or converted. Upstart may not redeem the notes prior to August 20, 2024. Upstart may redeem for cash all or any portion of the notes, at its option, on or after August 20, 2024, if the last reported sale price of Upstart’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which Upstart provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the notes, which means that Upstart is not required to redeem or retire the notes periodically. Holders of the notes will have the right to require Upstart to repurchase for cash all or a portion of their notes upon the occurrence of a fundament...