Opendoor Technologies Inc. announced a private placement of $650 million in 0.00% Convertible Senior Notes due 2030. Concurrent with the offering, the company will repurchase $158 million of its common stock and has entered into capped call transactions to mitigate potential shareholder dilution. The transactions are expected to provide approximately $440 million in net proceeds for growth capital and general corporate purposes.
Key Details
- Offering: $650 million aggregate principal of 0.00% Convertible Senior Notes, maturing on August 15, 2030.
- Conversion Terms: The notes have an initial conversion price of approximately $4.71 per share, representing a 35% premium over the closing stock price on August 12, 2026.
- Share Repurchase: The company will use approximately $158 million of the proceeds to repurchase 45.3 million shares of its common stock, representing about 5% of shares outstanding.
- Use of Proceeds: After funding the share repurchase and the cost of capped call transactions ($52.5 million), the company expects net proceeds of approximately $440 million for inventory expansion and corporate purposes.
- Dilution Mitigation: The capped call transactions have a cap price of $6.98 per share, which is expected to reduce potential dilution from the note conversion. The transaction is expected to close on or about August 19, 2026.