• Coinbase is offering investors the opportunity to buy back up to $150 million of its $1 billion 3.265% bonds before September 1, 2023.
• The offer includes a $30 premium for participants who tender their Notes before August 18 and a $615 per $1000 principal value for those who participate after.
• Citigroup Global Markets will be the Dealer Manager overseeing the buyback program.
Coinbase Commences Partial Bond Repurchase Program
Coinbase announced on Monday that it is commencing a partial repurchase of its $1 billion bonds, targeting up to $150 million for the offer. The bonds have an interest rate of 3.265% and are set to mature in 2031.
Early Buy Offer Includes Premium
Investors who tender their Notes before August 18 will receive an early buy offer that includes a $30 premium, equating to 64.5 cents on each dollar of the bond’s principal amount ($645 per 1000). Participants who validly offer their bonds after August 18 but before September 1 will get $615 per 1000 of the bond’s principal value – still representing a 60 cent premium over preannouncement unaffected bond prices.
Q2 Financial Report Stronger Than Forecast
Coinbase reported second quarter revenue for 2023 at $708 million, beating analyst estimates of $628 million by more than 13%. Adjusted earnings per share loss came in at 0.42 compared to forecasts of 0.76, indicating strong financial performance from Coinbase despite market volatility during this time period..
Dealer Manager Appointed
Citigroup Global Markets has been appointed as the Dealer Manager for this partial repurchase program from Coinbase . The company will handle all aspects related to eligibility and settlement procedures associated with this program.
The partial repurchase program offers investors a unique opportunity to gain returns from their investments in Coinbase’s bonds while also helping support future development initiatives from the company itself. Investors should keep an eye out for further updates related to eligibility requirements and details about when payments are expected as the offer continues until September 1st, 2023