Co-Manager
LendingTree, Inc.
Equity Capital Markets
Convertible Senior Notes Offering
Transaction Details
- On July 21, 2020, LendingTree, Inc. (“LendingTree” or “TREE”) announced the pricing of $500 million aggregate principal amount of 0.50% Convertible Senior Notes due 2025 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended
- The notes will bear interest at a rate of 0.50% per year, payable semiannually in arrears on January 15 and July 15 of each year, beginning on January 15, 2021
- LendingTree also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $75.0 million aggregate principal amount of notes
- The initial conversion rate for the notes is 2.1683 shares of TREE common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $461.19 per share of common stock)
- The initial conversion price of the notes represents a premium of approximately 30.0% to the last reported sale price of TREE common stock on July 21, 2020
- LendingTree intends to use the net proceeds from the offering to pay the net cost of the convertible note hedge transactions, to repurchase a portion of the company’s outstanding 0.625% Convertible Senior Notes due 2022 and for general corporate purposes
About the company
LendingTree, Inc.
LendingTree, Inc. (NASDAQ: TREE) is the nation’s leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student refinances, credit cards, insurance and more. LendingTree, Inc. is headquartered in Charlotte, NC.
Sources: Transaction press release and Offering Memorandum
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The offering of the convertible notes was made only by means of an offering memorandum in a private offering to qualified institutional buyers (as defined in Rule 144A under the Securities Act of 1933). The notes and the shares of the Company’s common stock issuable upon conversion of the notes, if any, have not been registered under the Securities Act of 1933 or any state securities laws and the Company does not intend to file a shelf registration statement for resale of the notes or such common stock, if any.
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