- MakeMyTrip (MMYT, Financial) completed a significant offering of US$1.25 billion in convertible senior notes due 2030.
- The initial purchasers exercised their full option to buy an additional US$187.5 million in notes.
- MakeMyTrip plans to use the proceeds to repurchase a portion of its Class B ordinary shares from Trip.com Group Limited.
MakeMyTrip Ltd (MMYT) has announced the successful closing of its US$1.25 billion offering in convertible senior notes due in 2030. Additionally, the initial purchasers took full advantage of their option to acquire an extra US$187.5 million in notes, culminating in a total notes offering of US$1.4375 billion.
The notes, which bear no interest, were issued in a private offering to qualified institutional buyers as per Rule 144A under the Securities Act of 1933. The company obtained approximately US$1.41 billion in net proceeds from this exercise, after accounting for the initial purchasers' discounts and estimated offering expenses.
Simultaneously, MakeMyTrip closed a registered public offering of 16,000,000 ordinary shares at a price of US$90 per share. The underwriters also exercised the option to purchase an additional 2,400,000 shares.
MakeMyTrip intends to utilize the net proceeds from these offerings to repurchase a portion of its Class B ordinary shares from Trip.com Group Limited. The convertible notes are set to mature by July 1, 2030, unless they are redeemed, repurchased, or converted before this date. They are convertible into ordinary shares at a conversion rate equivalent to a 35% premium on the public offering price of the ordinary shares.
The company may redeem the notes on or after July 10, 2028, if specific conditions such as the notes being freely tradable and the last sold price of the company's shares being at least 130% of the conversion price are met. Holders can also require MakeMyTrip to repurchase their notes on July 3, 2028.
