M
ME NEWS
13 May 2025, 22:11
Hims & Hers Issues $1.0 Billion in Zero-Coupon Convertible Notes Due 2030, Accompanied by Capped Call Transactions
Hims & Hers Health, Inc. has completed the issuance of $1.0 billion in principal amount of 0.00% Convertible Senior Notes due 2030, following full exercise of an over-allotment option. The privately placed offering, conducted under Rule 144A, was finalized on May 13, 2025, with the notes governed by an indenture with U.S. Bank Trust Company.
These senior unsecured notes mature on May 15, 2030, and do not bear interest. They are convertible into Class A common stock at an initial price of approximately $70.67 per share, with a maximum potential conversion rate of 19.4552 shares per $1,000 of principal. Redemption and conversion rights may be triggered by specified events, including “Make-Whole Fundamental Changes” or corporate reorganizations.
To offset dilution from potential conversions, Hims & Hers also entered into capped call transactions with several financial institutions. These cover the same number of shares underlying the notes and carry a cap price of $89.95, representing a 75% premium over the share price at pricing. The capped call transactions cost the company approximately $47.8 million.
Hims & Hers Health, Inc. has completed the issuance of $1.0 billion in principal amount of 0.00% Convertible Senior Notes due 2030, following full exercise of an over-allotment option. The privately placed offering, conducted under Rule 144A, was finalized on May 13, 2025, with the notes governed by an indenture with U.S. Bank Trust Company.
These senior unsecured notes mature on May 15, 2030, and do not bear interest. They are convertible into Class A common stock at an initial price of approximately $70.67 per share, with a maximum potential conversion rate of 19.4552 shares per $1,000 of principal. Redemption and conversion rights may be triggered by specified events, including “Make-Whole Fundamental Changes” or corporate reorganizations.
To offset dilution from potential conversions, Hims & Hers also entered into capped call transactions with several financial institutions. These cover the same number of shares underlying the notes and carry a cap price of $89.95, representing a 75% premium over the share price at pricing. The capped call transactions cost the company approximately $47.8 million.
