Upstart Holdings, Inc. (UPST), a lending platform, announced on Tuesday the pricing of a $375 million private offering of convertible senior notes maturing in 2029.
The proceeds from this offering will be allocated toward several key financial strategies. These include covering the costs associated with capped call transactions, repurchasing approximately $334.2 million in principal of the company's 0.25% convertible senior notes due in 2026, and general corporate purposes.
Notably, the total offering amount has been increased from the initial $300 million previously announced.
Additionally, Upstart has provided the initial purchasers of these notes with an option to acquire up to an additional $56.25 million in principal amount.
The transaction with the initial purchasers is scheduled to be finalized by September 19.
Upstart anticipates net proceeds from this offering to be roughly $365.9 million, potentially rising to around $420.9 million should the initial purchasers fully exercise their option for additional notes.
