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Stock impact report

Airbnb Plans Bond Market Debut Ahead of Debt Maturity [Yahoo! Finance]

Airbnb, Inc. - Class A (ABNB) 
Company Research Source: Yahoo! Finance
This article first appeared on GuruFocus Airbnb ( NASDAQ:ABNB ) is preparing a potential debut investment-grade bond offering as the company approaches the maturity of its outstanding convertible notes, according to Bloomberg . The discussions follow investor calls as the company explores refinancing options. The company issued $2 billion in 0% convertible senior notes in 2021 that mature on March 15, 2026, creating a refinancing decision point for management. The 2021 convertibles were structured as zero-coupon instruments, allowing Airbnb to carry $2 billion of debt at no interest cost while the company was still in early post-IPO growth mode. The notes have a conversion price of $288.64 per share, more than twice recent trading levels. Issuing conventional bonds now would introduce a recurring interest burden, though it would also extend the company's maturity profile and diversify its creditor base. Airbnb shares dropped intraday. Recommended Stories Show less Read more
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