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

• CoinJournal
• Coinbase Press Release