Affirm OK’d to buy back up to $800 million of 2026 convertibles

By Marisa Wong

Los Angeles, Dec. 8 – Affirm Holdings, Inc.’s board of directors authorized on Dec. 6 the repurchase of up to $800 million aggregate principal amount of its outstanding 0% convertible senior notes due 2026, according to an 8-K filing with the Securities and Exchange Commission.

This new authorization succeeds an existing $800 million repurchase authorization approved by the company’s board of directors in June that will expire on Dec. 31.

Note repurchases under the new authorization may be made from time to time during the period beginning on Jan. 1 and ending on Dec. 31, 2024 through open market purchases, privately negotiated purchases, purchase plans under Rule 10b5-1 of the Securities Exchange Act of 1934 or through a combination of those.

Buybacks are subject to available liquidity, general market and economic conditions, alternate uses for the capital and other factors, and there is no minimum principal amount of 2026 notes that the company is obligated to repurchase.

The company will not receive any cash proceeds from any repurchases of the 2026 notes.

In exchange for paying cash in connection with any such repurchases, the company will receive and cancel the repurchased 2026 notes.

Should the company ultimately repurchase the entire $800 million principal amount authorized for repurchase, about $626 million of the 2026 notes will remain outstanding with terms unchanged.

Affirm is a financial technology company based in San Francisco.

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