Lyft launches $450M convertible debt offering

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Lyft (NASDAQ:LYFT [https://seekingalpha.com/symbol/LYFT]) announced plans to offer $450 million aggregate principal amount of convertible senior notes due 2030 through a private offering [https://seekingalpha.com/pr/20217103-lyft-announces-private-offering-of-450-million-of-convertible-senior-notes], with an option for buyers to purchase an additional $50 million.

The notes will be unsecured debt and can be converted into cash, Lyft Class A common stock, or a mix of both. Terms like interest rate and conversion rate will be decided at pricing.

Lyft plans to use the funds for capped call transactions, repurchasing up to $100 million of its Class A common stock, and general corporate purposes, which may include working capital, acquisitions, or other strategic investments.

LYFT -3.76% premarket.

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