Coinbase Launches $150 Million Bonds Buyback Program

3:50 pm
August 8, 2023

Cryptocurrency exchange Coinbase has announced a partial repurchase of its $1 billion bonds, with the aim of buying back up to $150 million of the 3.265% bonds set to mature in 2031. The buyback program is open until September 1, and investors who tender their Notes before August 18 will be eligible for an early buy offer, including a $30 premium. The program is being managed by Citigroup Global Markets.

Summary

Coinbase, the popular cryptocurrency exchange, has initiated a plan to buy back up to $150 million of its $1 billion bonds. The bonds, which have a 3.265% interest rate and mature in 2031, will be repurchased through a partial buyback program that is open until September 1. Investors who tender their Notes before August 18 will be eligible for an early buy offer, including a $30 premium. This move comes after Coinbase reported better-than-expected Q2 2023 financial results, with $708 million in revenue, beating analyst estimates of $628 million by 13%. This buyback program aims to return value to bondholders and optimize the company’s capital structure.

Offer Details

Coinbase’s buyback program offers different prices based on the timing of the bondholders’ participation:

  • Investors who tender their Notes before August 18 will receive $645 per $1,000 of the bond’s principal amount, with a premium return of 64.5 cents on each dollar.
  • Participants who offer to sell their bonds after August 18 but before the offer’s expiry date of September 1 will receive $615 per $1,000 of the bond’s principal value.

In both cases, participants will receive a premium return on the preannouncement bond price of 60 cents per dollar.

Frequently Asked Questions (FAQ)

1. What is Coinbase’s buyback program?

It is a partial repurchase program launched by Coinbase to buy back up to $150 million of its $1 billion bonds.

2. How long is the buyback program open?

The buyback program is open until September 1.

3. Who is eligible for the early buy offer?

Investors who tender their Notes for the purchase program before August 18 are eligible for the early buy offer, which includes a $30 premium.

4. What price will bondholders receive for their bonds?

The price for bondholders depends on their participation timing. Holders who tender their Notes before August 18 will receive $645 per $1,000 of the bond’s principal amount, while participants who offer to sell their bonds after that date but before September 1 will receive $615 per $1,000 of the bond’s principal value.

5. Who is managing the buyback program?

Citigroup Global Markets is the dealer manager for Coinbase’s buyback program.

Sources


Share:

More in this category ...

11:39 pm February 26, 2024

Cryptocurrency Analyst Projects Bitcoin’s New All-Time High on the Horizon

Featured image for “Cryptocurrency Analyst Projects Bitcoin’s New All-Time High on the Horizon”
9:30 pm February 26, 2024

From Farm to Store: Exploring Blockchain’s Impact on Food Supply Chain Traceability

Featured image for “From Farm to Store: Exploring Blockchain’s Impact on Food Supply Chain Traceability”
5:38 pm February 26, 2024

Pullix (PLX) Gains Remarkable Momentum Leading Up to Highly Anticipated Market Debut

Featured image for “Pullix (PLX) Gains Remarkable Momentum Leading Up to Highly Anticipated Market Debut”
4:41 pm February 26, 2024

Enhancing Network Resilience through NS1 Connect Filter Chains

Featured image for “Enhancing Network Resilience through NS1 Connect Filter Chains”
1:55 pm February 26, 2024

From Centralization to Decentralization: Exploring the Benefits of Video Streaming On Blockchain

Featured image for “From Centralization to Decentralization: Exploring the Benefits of Video Streaming On Blockchain”
11:42 am February 26, 2024

Ethereum Price Surges Over $3,100: Potential Breakout on the Horizon

Featured image for “Ethereum Price Surges Over $3,100: Potential Breakout on the Horizon”
10:26 am February 26, 2024

Siacoin (SC) Surges to Highest Level in 2 Years as Investor Confidence Grows

Featured image for “Siacoin (SC) Surges to Highest Level in 2 Years as Investor Confidence Grows”
6:23 am February 26, 2024

The Power of Blockchain in Fashion Retail: Enhancing Customer Experience and Trust

Featured image for “The Power of Blockchain in Fashion Retail: Enhancing Customer Experience and Trust”
3:14 am February 26, 2024

As Bitcoin holds key level, investors are aware of Bitcoin Dogs

Featured image for “As Bitcoin holds key level, investors are aware of Bitcoin Dogs”
11:45 pm February 25, 2024

Exploring Top Proof Of Work Blockchains Similar to Bitcoin

Featured image for “Exploring Top Proof Of Work Blockchains Similar to Bitcoin”
10:53 pm February 25, 2024

A Step-by-Step Explanation of Tokenizing Renewable Energy Certificates

Featured image for “A Step-by-Step Explanation of Tokenizing Renewable Energy Certificates”
3:23 pm February 25, 2024

Strengthening Your Online Identity: Leveraging Blockchain for Fraud Prevention

Featured image for “Strengthening Your Online Identity: Leveraging Blockchain for Fraud Prevention”
12:50 pm February 25, 2024

US Prosecutors Request Former Binance CEO Zhao to Surrender Passports

Featured image for “US Prosecutors Request Former Binance CEO Zhao to Surrender Passports”
11:47 am February 25, 2024

Uniswap’s Remarkable 71% Surge Sparks Excitement in the Crypto Market

Featured image for “Uniswap’s Remarkable 71% Surge Sparks Excitement in the Crypto Market”
7:53 am February 25, 2024

The Future of Cloud Computing: Embracing Decentralization for Enhanced Privacy and Control

Featured image for “The Future of Cloud Computing: Embracing Decentralization for Enhanced Privacy and Control”
5:39 am February 25, 2024

Pangolin (PNG) Price Surges 234% in a Day amidst Bitcoin Dogs Craze

Featured image for “Pangolin (PNG) Price Surges 234% in a Day amidst Bitcoin Dogs Craze”
12:22 am February 25, 2024

Blockchain and Wine Investing: Uncovering New Opportunities in the Digital Era

Featured image for “Blockchain and Wine Investing: Uncovering New Opportunities in the Digital Era”
11:50 pm February 24, 2024

Solana Breaks Below Key Moving Average on 4-Hour Chart, SOL Price at Risk?

Featured image for “Solana Breaks Below Key Moving Average on 4-Hour Chart, SOL Price at Risk?”
10:27 pm February 24, 2024

Cardano’s ADA Approaches Critical Level with Analyst Predicting Potential Correction

Featured image for “Cardano’s ADA Approaches Critical Level with Analyst Predicting Potential Correction”
6:04 pm February 24, 2024

Exploring the Various Applications of Conversational AI in Enterprises

Featured image for “Exploring the Various Applications of Conversational AI in Enterprises”
4:49 pm February 24, 2024

Tokenize Your Fandom: How Sports Fans Can Benefit from Tokenized Assets

Featured image for “Tokenize Your Fandom: How Sports Fans Can Benefit from Tokenized Assets”
3:14 pm February 24, 2024

FTX Reaches $33 Million Settlement to Sell European Subsidiary back to Original Owners

Featured image for “FTX Reaches $33 Million Settlement to Sell European Subsidiary back to Original Owners”
11:52 am February 24, 2024

Analyst Forecasts $40 Target For Chainlink (LINK)

Featured image for “Analyst Forecasts $40 Target For Chainlink (LINK)”
9:19 am February 24, 2024

The Trustworthy Future: How Blockchain is Combating Counterfeit Products

Featured image for “The Trustworthy Future: How Blockchain is Combating Counterfeit Products”
6:25 am February 24, 2024

How to implement the General Data Protection Regulation (GDPR)

Featured image for “How to implement the General Data Protection Regulation (GDPR)”
1:49 am February 24, 2024

Securing Content: How Decentralized Distribution Networks Enhance Data Privacy

12:42 am February 24, 2024

Gauntlet Ends Aave Partnership Amidst Disagreements on DAO Governance

11:55 pm February 23, 2024

Crypto Experts Express High Confidence in XRP Price with Multiple Price Targets in Sight

Featured image for “Crypto Experts Express High Confidence in XRP Price with Multiple Price Targets in Sight”
6:46 pm February 23, 2024

IBM Cloud delivers enterprise sovereign cloud capabilities

6:19 pm February 23, 2024

Blockchain’s Role in Secure and Efficient Drug Distribution: Transforming Pharmaceutical Logistics