Groupon Raises $200M Via Private Institutional Convertible Debt For Refinancing

Groupon Inc GRPN priced $200 million 1.125% convertible senior notes due 2026 in a private institutional placement to raise $193 million in gross proceeds.

• Groupon also granted the initial note purchasers a 13-day option to procure additional notes up to $30 million.
• The initial conversion price of $68.12 represented a 30% premium on Groupon’s March 22 closing price of $52.4.
• The notes would be redeemable after March 20, 2024, but only if the last reported sale price per share of Groupon’s stock exceeds 130% of the conversion price for a specified period.
• Groupon planned to partly utilize the offering proceeds to incur the capped call transactions. The remainder proceeds, along with cash on hand, would be used to repay or repurchase the existing 3.25% Convertible Senior Notes due April 2022.
• The company entered into privately negotiated capped call transactions with one or more of the initial purchasers to reduce potential stock dilution upon note conversion. The capped call transactions’ initial cap price is $104.80, representing a 100% premium to the March 22 closing price.
• The company’s cash and cash equivalent amounted to $850.6 million as of December 31, 2020. Convertible senior note balance amounted to $229.5 million.
• Groupon stock has gained 374% last year.
• Price action: GRPN shares closed lower by 9.62% at $52.4 on Monday.