March 3, 2021
$2 billion Convertible Notes
Size: $2 billion (no greenshoe)
Offering Type: 144A
Execution Structure: 1 Day Marketed
Maturity: 5 Years
Structure: Provisionally Callable in 3 Years with Make-Whole
Coupon: 0.0%
Premium: 60%
Effective Premium: 100% with Capped Call
Matthews South Role: Financial Advisor
Active Bookrunners: Morgan Stanley / Goldman Sachs
Offering Type: 144A
Execution Structure: 1 Day Marketed
Maturity: 5 Years
Structure: Provisionally Callable in 3 Years with Make-Whole
Coupon: 0.0%
Premium: 60%
Effective Premium: 100% with Capped Call
Matthews South Role: Financial Advisor
Active Bookrunners: Morgan Stanley / Goldman Sachs
$2bn Zero Coupon Convertible
Expedited Execution to Capture Opportunistic Moment in Market
- Matthews South advised Airbnb in execution designed to take advantage of strong convertible market conditions seen in recent week
- The company raised $2bn at record terms despite a volatile backdrop (Nasdaq down 2.7%, S&P down 1.3% and 5-year benchmark rate up 8bps)
Call Spread Bid Process to Optimize Terms
- Matthews South ran a call spread auction which achieved extremely efficient pricing terms, and resulted in dilution protection up to stock price at 2x issue price (~531% above IPO price)
Day of Marketing
- Matthews South helped to ensure that the security was priced optimally
- Airbnb achieved:
- The best terms ever for a convertible of this size (wins by 7.5% in conversion premium)
- The best terms ever for a company within 2 years of IPO
- Largest single-tranche technology convertible deal since 2017
