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Laxman Pai, Opalesque Asia: The cryptocurrency exchange Coinbase seeks to raise $1.25 billion in funds through a proposed private offering for institutional buyers.
The United States-based service provider for digital assets said in a press release that the offering will be in the form of convertible senior notes due 2026, available only for institutional investors. These investors are defined as such according to Rule 144A of the U.S. Securities Act.
"Coinbase also expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $187.5 million principal amount of notes solely to cover over-allotments," the company added. "The notes will be senior, unsecured obligations of Coinbase will accrue interest payable semi-annually in arrears and will mature on June 1, 2026, unless earlier repurchased, redeemed or converted."
When addressing its reasoning for this issuance, Coinbase pointed out that this capital raise represents an opportunity to bolster Coinbase's already strong balance sheet with low-cost capital that maintains operating freedom and minimizes dilution for Coinbase's stockholders.
"Coinbase intends to use the net proceeds from the offering for general corporate purposes, which may include working capital and capital expenditures, and to pay the cost of the capped call transactions," it said.
Coinbase has not yet revealed the interest rate, initial conversion rate, and other terms but explained that such details...................... To view our full article Click here
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