Etsy Announces Pricing of $650 Million of Convertible Senior Notes Offering

Core Viewpoint - Etsy, Inc. has announced the pricing of $650 million in convertible senior notes due 2030, with an option for initial purchasers to buy an additional $50 million, aimed at raising capital for share repurchases and general corporate purposes [1][5]. Group 1: Notes Details - The notes will have a 1.00% annual interest rate, maturing on June 15, 2030, and will be convertible into cash, shares, or a combination at Etsy's discretion [2]. - The initial conversion rate is set at 11.6570 shares per $1,000 principal amount, translating to an initial conversion price of approximately $85.79 per share, which is a 42.5% premium over the last reported sale price on June 11, 2025 [2]. - Etsy can redeem the notes for cash starting June 20, 2028, if the stock price meets certain conditions [3]. Group 2: Use of Proceeds - Etsy estimates net proceeds from the offering to be approximately $639.3 million, or $688.5 million if the additional notes option is fully exercised, with $150 million allocated for share repurchases and the remainder for general corporate purposes [5][7]. - Concurrently, Etsy plans to repurchase shares at a price of $60.20, which was the last reported sale price on June 11, 2025 [7]. Group 3: Company Overview - Etsy operates two-sided online marketplaces connecting buyers and sellers globally, with a mission to "Keep Commerce Human" [9]. - The company also owns the fashion resale marketplace Depop, benefiting from shared expertise across its platforms [10].