- Opendoor Technologies (OPEN, Financial) restructures $325 million in convertible senior notes due 2030.
- The company successfully raises $75.3 million in cash through new note issuance.
- New notes have a conversion price set at $1.57, reflecting an 80% premium.
Opendoor Technologies Inc. (OPEN) has completed a significant financial maneuver by restructuring its debt through the issuance of $325 million in 7.000% Convertible Senior Notes due 2030. This transaction includes $245.8 million exchanged from existing 2026 Notes along with $79.2 million in new notes sold for cash, generating approximately $75.3 million in gross proceeds.
The new 2030 Notes offer a conversion rate of 637.1050 shares per $1,000 principal amount, equating to a conversion price of $1.57 per share. This reflects an 80% premium over the stock's last trading price of $0.872, underscoring investor confidence in the company's long-term growth potential.
The maturity date for these notes is set for May 15, 2030, with conversion options available to holders, while Opendoor maintains redemption rights under specific conditions after May 22, 2028. This transaction extends Opendoor's debt maturity while adding essential liquidity, albeit at the cost of a higher interest rate compared to the previous notes.
This strategic restructuring reflects the company's proactive approach towards managing its financial obligations while demonstrating the ongoing investor support in Opendoor's business model amidst current market challenges.
