- Afterpay rival Zip Co (Z1P) has successfully priced $400 million senior unsecured convertible notes to help speed up global expansion
- The notes will mature on April 23, 2028, and are convertible into fully paid ordinary shares in Zip
- The initial conversion price is $12.39 per share, which represents a 35 per cent premium to the reference share price
- Zip last traded at $9.61 per share on April 14
Zip Co (Z1P) has successfully priced $400 million senior unsecured convertible notes to help speed up global expansion.
The notes will mature on April 23, 2028, and are convertible into fully paid ordinary shares in Zip. The initial conversion price is $12.39 per share, which represents a conversion premium of 35 per cent over the reference share price.
The buy now, pay later platform will use the funds to drive growth in core markets, expand into new regions and for general corporate purposes.
“We are very pleased with the strong global demand for this offering,” Co-founder and COO Peter Gray said.
“This transaction further diversifies Zip’s sources of capital and allows us to pursue our global growth aspirations while reducing potential dilution of existing shareholders,” he added.
Additionally, Jarden Australia intends to sell around 11 million ordinary shares to facilitate some or all of the hedging activity that may be related to the notes under a delta placement.
The clearing price is $9.18 per ordinary share, which represents a discount of 4.5 per cent to the closing price on April 14. Zip’s Co-Founders, in conjunction with the delta placement, have also sold two million shares.
Just before the market opens, Zip is trading at $9.61 per share.