DoorDash, Inc. (NASDAQ: DASH) recently announced the successful closing of its 0% convertible senior notes offering, which was upsized to $2.75 billion. The net proceeds from the offering amounted to approximately $2,720 million after deducting fees and estimated expenses.
A portion of the net proceeds, around $338.5 million, was utilized to fund the cost of entering into previously disclosed convertible note hedge transactions. It's worth noting that this cost was partially offset by the proceeds from the sale of warrants pursuant to previously disclosed warrant transactions.
DoorDash intends to use the remaining net proceeds for general corporate purposes, including potential acquisitions and potential repurchases of shares of its outstanding Class A common stock.
The offering represents an opportunistic capital raise for DoorDash, and the company also utilized a portion of the proceeds to purchase a hedge overlay to offset any share dilution up to a 150% premium to the stock price at issuance.
It's important to highlight that the offer and sale of the notes and the shares of DoorDash's Class A common stock potentially issuable upon conversion of the notes have not been registered under the U.S. Securities Act of 1933 or the securities laws of any other jurisdiction.
DoorDash, which is a leading local commerce platform globally, was founded in 2013 and has expanded to over 30 countries. The company aims to drive economic vitality in the regions it serves worldwide through its marketplace and commerce platform.
As DoorDash continues to make strategic financial moves, it will be interesting to see how the utilization of the proceeds from this offering impacts its future growth and innovation initiatives. As a result of these announcements, the company's shares have moved 1.78% on the market, and are now trading at a price of $212.36. Check out the company's full 8-K submission here.
