BILL Holdings to buy back $748.2 million of 0% convertibles due 2025

By Mary-Katherine Stinson

Lexington, Ky., March 7 – BILL Holdings, Inc. agreed with certain noteholders in privately negotiated terms to repurchase $748.2 million aggregate principal amount of its outstanding 0% convertible senior notes due 2025 for an aggregate cash repurchase price of $707.1 million, according to an 8-K filing with the Securities and Exchange Commission.

The final repurchase price is subject to adjustment based on the volume weighted average price of the company’s common stock during the agreed upon measurement period.

The transactions are expected to settle on March 13.

The company also agreed to terminate a portion of the capped call transactions previously entered into with the issuance of the 2025 notes, in a notional amount equal to the 2025 notes that are repurchased.

BILL expects to receive $7.6 million from the partial unwinding of this transaction, subject to final adjustment.

After settlement, approximately $401.8 million principal amount of the notes will remain outstanding.

BILL is a Palo Alto, Calif.-based cloud-based software company that automates financial operations for small and mid-size businesses. The company was formerly known as Bill.com Holdings Inc.

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