Summary
Affirm Holdings, Inc. (AFRM) announced on March 7, 2023, an additional repurchase of its outstanding 0% Convertible Senior Notes due 2026. This transaction, expected to close around March 8, 2023, involves the company paying approximately $48 million in cash to repurchase about $70 million in aggregate principal amount of these notes. This follows a similar repurchase announced on February 14, 2023. Combined with the previous repurchase, Affirm will have bought back approximately $299 million of its 2026 Convertible Senior Notes, leaving about $1.43 billion still outstanding with unchanged terms. Importantly, this transaction is a use of cash for Affirm and does not involve the company receiving any proceeds; instead, it cancels the repurchased notes. Investors should note that this action reduces the outstanding principal of convertible debt.
Key Highlights
- 1Affirm repurchased an additional $70 million (aggregate principal) of its 0% Convertible Senior Notes due 2026 for approximately $48 million in cash.
- 2This repurchase is a continuation of a prior transaction announced on February 14, 2023.
- 3The total principal amount of 2026 Notes repurchased since February 14, 2023, now stands at approximately $299 million.
- 4Approximately $1.43 billion in aggregate principal amount of the 2026 Notes remains outstanding.
- 5The terms of the remaining outstanding 2026 Notes are unchanged.
- 6This transaction is expected to close on or about March 8, 2023.
- 7The repurchase uses company cash and does not generate proceeds for Affirm; the repurchased notes will be cancelled.