Airbnb Seeks To Raise $2B Via Convertible Notes For Debt Refinancing

Airbnb Inc (NASDAQ: ABNB) proposes to offer $2 billion convertible senior notes due 2026 in a private institutional offering.
The offering proceeds will be partly utilized to fund capped call transactions. Airbnb plans to use the remaining proceeds, along with its existing cash, for debt repayment.
The company plans to enter into privately negotiated capped call transactions with one or more of the initial purchasers to reduce potential stock dilution upon converting the notes.
The notes will be redeemable after March 20, 2024, but only if the last reported sale price per share of Airbnb's Class A common stock exceeds 130% of the conversion price for a specified period.
Airbnb's cash balance stood at $5.5 billion as of December 31, 2020. Long term debt was $1.8 billion.
The stock has gained 3.4% in last month.
Price action: ABNB stock closed lower by 3.32% at $189.90 on Tuesday.