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Afterpay (ASX:APT) - CEO, Anthony Eisen
CEO, Anthony Eisen
Source: American Banker
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  • But now, pay later frontrunner Afterpay (APT) has upsized its ten-figure convertible note offering to $1.5 billion
  • Just a day after unveiling the offer alongside a respectable half-year report, the company tagged another $250 million onto the offer, which was originally priced at $1.25 billion
  • The notes are due in 2026 and have an initial conversation price of $194.82 — a hefty 45 per cent premium on the shares’ recent value
  • The big-ticket offering will fund the company’s U.S. expansion and bring its stake in Afterpay U.S. from 80 to 93 per cent
  • In tandem with the offering, Executive Directors and joint CEOs Anthony Eisen and Nicholas Molnar are selling 450,000 shares each, netting the duo around $58.5 million apiece
  • Afterpay shares opened 6.22 per cent down for a neat $126 per share

But now, pay later frontrunner Afterpay (APT) has upsized its ten-figure convertible note offering to $1.5 billion.

Just a day after unveiling the offer alongside a respectable half-year report, the company tagged another $250 million onto the originally allocated $1.25 billion.

The notes are due in 2026 and have an initial conversation price of $194.82 — a hefty 45 per cent premium on the shares’ recent value.

The deal’s bookrunners include big-name financers like Citigroup Global Markets, Goldman Sachs and J.P. Morgan.

In tandem with the offering, Executive Directors and joint CEOs Anthony Eisen and Nicholas Molnar are selling out of 450,000 shares each, netting the duo a cool $58.5 million apiece based on recent trading levels. The CEO selldown was approved by an independent sub-committee made up of the Afterpay board, which determined the move was “in the best interest” of shareholders.

The big-ticket note offering will fund the company’s U.S. expansion and bring its stake in its U.S. arm from 80 to 93 per cent.

To achieve this, Afterpay will cash U.S. firm Matrix Partners out of 35 per cent of its holdings in Afterpay U.S in a $373 million deal. Another $225 million will fund an employee share buyback scheme as the company continues to consolidate control of its state-side operations.

Despite the upsizing, investors appear skittish of the CEO sell-down. Afterpay shares opened 6.22 per cent down for a neat $126 per share at 10:08 am AEDT.

APT by the numbers
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