Robinhood launches $2.0 billion convertible notes offering due 2029
Robinhood Markets announced a private placement of $2.0 billion in convertible senior notes due 2029, with approximately $300 million of proceeds earmarked for share repurchases. The remainder will be used for growth investments and to fund capped call purchases intended to offset dilution, with capped calls targeted at a 125% premium.
Robinhood Markets announced June 22 it intends to offer $2.0 billion in aggregate principal amount of convertible senior notes due 2029 in a private placement to qualified institutional buyers under Rule 144A.
The Menlo Park-based retail brokerage will use approximately $300 million of the proceeds to repurchase shares of its Class A common stock, though the company stated the actual amount repurchased may differ from that target. The remainder will provide strategic flexibility to invest for future growth and fund the purchase of capped call transactions.
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