WASHINGTON (dpa-AFX) - DoorDash Inc. (DASH), local commerce platform globally, announced the pricing of $2.5 billion aggregate principal amount of 0% convertible senior notes due 2030 in a private offering. The size of the offering was increased from the previously announced $2.0 billion aggregate principal amount of notes.
In connection with the offering of the notes, DoorDash granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date the notes are first issued, up to an additional $250.0 million aggregate principal amount of notes. The sale of the notes to the initial purchasers is expected to settle on May 30, 2025.
The notes will mature on May 15, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Prior to the close of business on the business day immediately before November 15, 2029, the notes will be convertible only upon satisfaction of certain conditions and during certain periods. From and after November 15, 2029, the notes will be convertible at any time at the election of the holders of the notes until the close of business on the second scheduled trading day immediately preceding the maturity date.
DoorDash estimates that the net proceeds from the offering will be about $2.472 billion, after deducting the initial purchasers' discount and estimated offering expenses payable by DoorDash.
DoorDash intends to use a portion of the net proceeds from the offering of the notes to fund the cost of entering into the convertible note hedge transactions, and the remainder of the net proceeds for general corporate purposes, which may include potential acquisitions and potential repurchases of shares of our outstanding Class A common stock.
If the initial purchasers exercise their option to purchase additional notes, then DoorDash expects to sell additional warrants to one or more of the option counterparties and use a portion of the net proceeds from the sale of the additional notes, together with the proceeds from the additional warrants, to enter into additional convertible note hedge transactions with the option counterparties.
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