Etsy Raises $1B Via Debt In Private Institutional Offering

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  • Etsy Inc ETSY priced $1 billion 0.25% convertible senior notes due 2028 to raise $986.7 million in a private institutional offering.
  • The initial conversion price of $246.80 per share represents a 45% premium to the June 8 closing price of $170.21. 
  • The notes will be redeemable after June 20, 2025, but only if the last reported sale price per share of Etsy’s stock exceeds 130% of the conversion price for a specified period.
  • Etsy has entered into capped call transactions with certain financial institutions to offset the potential stock dilution from any note conversion. The capped call transactions’ initial cap price is $340.42, representing a 100% premium to the June 8 closing price.
  • The company will utilize a portion of the proceeds to pay for the capped call transactions. 
  • Etsy will utilize a portion of the proceeds to repurchase shares worth $180 million. It will use the remainder for general corporate purposes.
  • Etsy’s long-term debt stood at $1.3 billion as of Mar. 31, 2021.
  • Etsy shares gained 123% last year.
  • Price action: ETSY shares traded higher by 1.05% at $172 in the premarket session on the last check Wednesday.
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