Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

Lyft Plans $450M Convertible Notes Offering

Lyft, Inc. has announced its plan to offer $450 million in Convertible Senior Notes due 2030 in a private offering. The company also intends to grant the initial purchasers of the notes an option to purchase an additional $50 million aggregate principal amount of the notes. The notes will be senior, unsecured obligations of Lyft, and interest will be payable semi-annually in arrears.

Lyft plans to use the net proceeds of the offering for several purposes, including paying for capped call transactions, repurchasing approximately $100 million of its Class A common stock from institutional investors, and potentially entering into additional capped call transactions with the option counterparties. Any remaining net proceeds will be used for potential future repurchases of its Class A common stock and/or for general corporate purposes.

In connection with the pricing of the notes, Lyft expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers and/or their respective affiliates and/or other financial institutions. The capped call transactions are generally expected to reduce potential dilution to the Class A common stock upon any conversion of notes and/or offset any cash payments Lyft elects to make in excess of the principal amount of converted notes, subject to a cap.

The notes will only be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and neither the notes nor the shares of Class A common stock potentially issuable upon conversion of the notes have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction.

Lyft has not designated any specific uses for the net proceeds and has no current agreements with respect to any material acquisitions or strategic transactions.

Investor Contact: Aurélien Nolf, Investor Relations * [email protected] Media Contact: Terra Carmichael, Media * [email protected] As a result of these announcements, the company's shares have moved -0.77% on the market, and are now trading at a price of $16.66. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS