Coinbase to Buy Up to $150M of $1B Bonds: Get a Premium Return!

• Coinbase announced on Monday that it is buying back up to $150 million of its $1 billion bonds.
• The offer includes a $30 premium for holders who tender their Notes before August 18.
• Citigroup Global Markets will be the Dealer Manager for the buyback program.

Coinbase Commences Partial Bond Buyback

Coinbase announced on Monday that it is commencing a partial repurchase of its $1 billion bonds, targeting up to $150 million worth of 3.265% bonds set to mature in 2031.

Early Buy Offer Includes Premium

Holders who tender their Notes before August 18 are eligible for an early buy offer with a premium of 30$. This translates to 64.5 cents per dollar of principal amount, while participants offering after August 18 but before September 1 will get 615$ per 1000$. Both sets will see a return above the unaffected preannouncement bond prices at 60 cents per dollar’s worth.

Q2 Financial Report Beats Forecasts

Coinbase reported revenue of 708 million dollars for Q2, 2023 which was 13% higher than analyst forecasts of 628 million dollars. Adjusted earnings per share loss came in at 0.42$, compared to estimates of 0.76$.

Dealer Manager Assigned

Citigroup Global Markets will be the Dealer Manager for Coinbase’s bond buyback program as they oversee offers and acceptances from investors during this period.

Conclusion

Coinbase is offering investors an attractive early buy offer as part of their partial bond repurchase program, while the exchange’s strong financial report signals good faith in this endeavor and promises potential returns above market value through September 1st when the offer expires .