Benzinga | Mar 3, 2021 09:07AM EST

Airbnb Seeks To Raise $2B Via Convertible Notes For Debt Refinancing

* Airbnb Inc (NASDAQ: ABNB) proposes to offer $2 billion convertible senior notes due 2026 in a private institutional offering.

* The offering proceeds will be partly utilized to fund capped call transactions. Airbnb plans to use the remaining proceeds, along with its existing cash, for debt repayment.

* The company plans to enter into privately negotiated capped call transactions with one or more of the initial purchasers to reduce potential stock dilution upon converting the notes.

* The notes will be redeemable after March 20, 2024, but only if the last reported sale price per share of Airbnb's Class A common stock exceeds 130% of the conversion price for a specified period.

* Airbnb's cash balance stood at $5.5 billion as of December 31, 2020. Long term debt was $1.8 billion.

* The stock has gained 3.4% in last month.

* Price action: ABNB stock closed lower by 3.32% at $189.90 on Tuesday.