Wayfair Prices Offering of $700 Million Senior Secured Notes

Core Viewpoint - Wayfair Inc. announced a private offering of $700 million in senior secured notes with a 7.750% interest rate, maturing in 2030, to finance the repurchase of existing convertible notes and for general corporate purposes [1][2]. Group 1: Notes Offering - The offering consists of$ 700 million in aggregate principal amount of 7.750% senior secured notes due September 15, 2030 [1] - The offering is expected to close on March 13, 2025, subject to customary closing conditions [1] - The notes will be fully guaranteed by Wayfair and certain domestic subsidiaries, secured on a first-priority basis by liens on the same assets that secure the Issuer's existing credit facilities [2][3] Group 2: Use of Proceeds - Approximately $580 million of the net proceeds will be used to repurchase outstanding 1.00% convertible senior notes due 2026 [2] - Remaining proceeds will be allocated for general corporate purposes, including potential repayment or repurchase of existing indebtedness [2] - Anticipated purchases of convertible notes may influence the market price of Wayfair's Class A common stock due to related market activities by holders of the repurchased notes [2] Group 3: Credit Agreement - Concurrently with the notes issuance, Wayfair plans to enter into an amended and restated credit agreement to establish a new credit facility [3] - The new credit facility is expected to extend the maturity to 2030 and provide commitments totaling$ 500 million [3] Group 4: Company Overview - Wayfair generated $11.9 billion in net revenue for the year ended December 31, 2024, and is headquartered in Boston, Massachusetts [6]