Airbnb Aims To Raise $2 Billion Senior Convertible Notes For Debts Refinancing

As of the 3rd of March, Airbnb Inc (ABNB), aims to boost $2 billion through convertible senior notes foot debts financing. This proposal is due 2026 in a private institutional offering. The proceeds of this offer will be partly utilized to finance limited call transactions. All remaining proceeds with the addition of the company's existing funds will be used to repay debts.

Airbnb is planning to proceed into privately negotiated capped calls transactions with one or more of the primary purchasers. This move is with the intent of reducing likely stock dilution after converting the notes. On the 20 of March 2024, the notes will be redeemable but only if the previously reported sale price per share of Airbnb's Class A common stock exceeds 130% of the price conversion for a specified period.

As of December 31, 2020, the cash balance of Airbnb was standing at $5.5 billion with long-term debt of $1.8 billion. The stock has progressed in the previous month by 3.4%.

Price action: ABNB stock closed lower by 3.32% at $189.90 on Tuesday, March 2, 2021.