Wayfair to Offer $700 Million in Senior Secured Notes

Wayfair LLC has announced plans to offer $700 million in senior secured notes due in 2032 through a private offering.

The company will use the net proceeds primarily to repurchase a portion of its outstanding 3.25% convertible senior notes due 2027 and 3.5% convertible senior notes due 2028. Remaining funds may also be allocated to reduce other debt obligations.

Image source: https://www.wayfair.com/

Repurchasing the 2027 and 2028 notes from certain holders could influence Wayfair’s Class A common stock. This could occur as holders who have hedged their equity price risk may unwind part or all of their hedge by purchasing Class A common stock or engaging in various derivative transactions tied to the stock.

As a result, these repurchases and related market activities might lead to fluctuations in Wayfair’s Class A stock price—either increasing or reducing any potential decline.

The notes will be fully and unconditionally guaranteed by Wayfair and certain of its domestic subsidiaries, which also guarantee the company’s senior secured revolving credit facility and current senior secured notes.

Also see: Wayfair Expands Retail Presence with New Store Planned for Yonkers, NY