Wayfair plans $700 million senior secured notes offering
BOSTON — Wayfair LLC is planning to offer $700 million in senior secured notes due 2032 in a private offering.
The company intends to use the net proceeds to purchase a portion of its outstanding 3.25% convertible senior notes due 2027 and 3.5% convertible senior notes due 2028. In addition, proceeds may be used for repayment of other indebtedness.
Repurchase of the 2027 and 2028 notes from certain holders may impact the company’s Class A common stock, as holders who have hedged their equity price risk with respect to the notes will unwind all or part of the hedge portions by buying Class A common stock or enter into or unwind various derivative transactions with respect to the stock, according to a company release.
See also:
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As a result, any future purchases of 2027 and 2028 notes and potential related market activities by holders could increase — or reduce the size of any decrease — in the market price of Wayfair’s Class A common stock.
The notes will be fully and unconditionally guaranteed on a senior secured basis by Wayfair and certain Wayfair domestic subsidiaries that guarantee the issuer’s senior secured revolving credit facility and existing senior secured notes.
