Wix To Offer $750 Mln Convertible Notes Due 2030; Plans Share Buybacks And Capped Call Transactions

Wix.com

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(RTTNews) - Wix.com Ltd. (WIX), the SaaS website builder platform, on Monday announced that it intends to offer $750 million aggregate principal amount of 0.00% Convertible Senior Notes due 2030 in a private placement.

The company also expects to grant the initial purchasers a 13-day option to buy up to an additional $112.5 million of the notes.

The final terms, including the conversion price, will be set at pricing.

The notes will be senior, unsecured, zero-coupon obligations maturing on September 15, 2030, unless earlier repurchased, redeemed, or converted. They will be convertible into cash, the company's shares, or both, at the company's discretion.

The company may redeem all notes for cash before maturity if certain tax events occur. Starting Sept. 20, 2028, it may also redeem all or part of the notes if its share price reaches at least 130% of the conversion price for a set period. The redemption price will equal principal plus any accrued special interest.

Wix plans to enter into capped call transactions with the initial purchasers or their affiliates to cover the shares underlying the notes.

The company said the counterparties to the capped call transactions may enter into derivative trades and buy or sell its shares around the pricing of the notes to establish or adjust hedges. Such activity could impact the market price of the company's shares or the notes, including during conversion periods.

It also plans to use part of the net proceeds to fund capped call transactions and repurchase $50 to $75 million of its ordinary shares, with the rest for general corporate purposes, including further buybacks and potential acquisitions.

In the pre-market trading, Wix is 2.02% lesser at $150 on the Nasdaq.