Robinhood Markets proposes $2B convertible debt offering

$HOOD plans to offer $2B in aggregate principal amount of convertible senior notes due 2029 in a private placement.
The firm also intends to grant the initial purchasers a 13-day option to purchase up to an additional $200M of the notes.
The notes will mature on October 1, 2029, unless earlier converted, redeemed or repurchased. The interest rate, the initial conversion rate and certain other terms of the notes will be determined at the time of pricing of the offering.
Robinhood plans to use around $300M of the net proceeds to repurchase its Class A common stock, although the amount of its Class A common stock that Robinhood actually repurchases may be more or less than $300M; a portion of the net proceeds to fund the costs of the capped call transactions; and the remainder of the net proceeds, if any, for general corporate purposes.