DoorDash has announced a proposed US$2 billion private offering of convertible senior notes, due 15 May 2030.
The food delivery firm has a market cap of US$86.91 billion.
The notes will be convertible to class A common stock during certain periods before 15 November 2029, then at any time before maturity. Investors may demand their notes be repurchased for their principal amount by the company up to the decided repurchase date.
DoorDash intends to enter into privately negotiated convertible note hedges with one or more of the initial purchasers to cover the shares of Class A common stock that will initially underlie the notes. It will also offer warrant transactions with option counterparties, allowing them to purchase shares of Class A common stock covered by the hedge transitions.
Proceeds from the offering are expected to go towards the cost of entering into the convertible note hedge transactions and general corporate purposes, including potential acquisitions and share repurchases.
Initial buyers will be able to purchase up to a US$200 million aggregate principal amount of notes. If this option is taken, DoorDash intends to sell additional warrants and convertible note hedge transactions.
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