Wayfair Inc. has successfully closed a private offering of $800 million in aggregate principal amount of 7.250% senior secured notes due 2029. The company intends to use the net proceeds from the notes offering, along with cash on hand, for the repayment of certain existing convertible senior notes and general corporate purposes.
The notes, which will mature on October 31, 2029, unless earlier repurchased or redeemed, are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by Wayfair and certain Wayfair domestic subsidiaries. These guarantees are secured on a first-priority basis by liens on the same assets that secure the issuer’s senior secured revolving credit facility.
Wayfair expressed its commitment to improving its cash flow profile and repaying upcoming maturities over the next year. The company's Chief Financial Officer and Chief Administrative Officer, Kate Gulliver, emphasized, "Wayfair has demonstrated considerable cost discipline over the past two years, and we’re excited for this next step on our journey of financial maturation."
It's worth noting that the notes and related guarantees have not been registered under the securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
As of the twelve months ended June 30, 2024, Wayfair generated $11.9 billion in net revenue and is headquartered in Boston, Massachusetts with global operations. As a result of these announcements, the company's shares have moved -1.9% on the market, and are now trading at a price of $55.86. For more information, read the company's full 8-K submission here.
