Redfin talks $525 million five-year convertible notes to yield 0% to 0.5%, up 32.5% to 37.5%

By Abigail W. Adams

Portland, Me., Oct. 14 – Redfin Corp. plans to price $525 million in five-year convertible notes after the market close on Thursday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

Goldman Sachs & Co. LLC is sole bookrunner for the Rule 144A offering, which carries a greenshoe of $78.75 million.

The notes are contingently convertible until July 15, 2025.

They are non-callable until Oct. 20, 2023 and then subject to a 130% hurdle with a make-whole.

There is takeover and dividend protection.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to repurchase a portion of the company’s 1.75% convertible notes due 2023 in privately negotiated transactions.

Remaining proceeds will be used for general corporate purposes.

Redfin is a Seattle-based residential real estate technology platform.

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