Redfin Corporation is proposing to offer $500 million aggregate principal amount of convertible senior notes due 2027, subject to market conditions and other factors. The notes are to be sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. Redfin also intends to grant to the initial purchasers of the notes an option to purchase up to an additional $75 million aggregate principal amount of notes for settlement within a period of 13 days from, and including, the date notes are first issued.
The notes will be general unsecured, senior obligations of Redfin; interest will be payable semi-annually in arrears.
The notes will mature on April 1, 2027, unless converted, repurchased or redeemed in accordance with their terms prior to such date. Prior to January 1, 2027, the notes will be convertible at the option of holders only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the notes may be settled in shares of Redfin common stock, cash or a combination of cash and shares of Redfin common stock, at the election of Redfin.
The interest rate, initial conversion rate, offering price and other terms are to be determined by negotiations between Redfin and the initial purchasers.
