Analyst Summary
- Wayfair LLC issued $700 million aggregate principal amount of 7.750% senior secured notes due 2030.
- Approximately $551 million of the net proceeds were used to repurchase approximately $578 million aggregate principal amount of 1.00% convertible senior notes due 2026.
- The remaining net proceeds will be used for general corporate purposes, including potential repayment or repurchase of other existing indebtedness.
- Wayfair entered into an amended and restated credit agreement providing for a $500 million senior secured revolving credit facility maturing on March 13, 2030.
- The revolving credit facility may be used for working capital and other general corporate purposes.
- Revolver borrowings bear interest at a variable rate based on Adjusted Term SOFR, the base rate, Adjusted Eurocurrency Rate, or the RFR rate, plus an applicable margin.
Potential Implications
Company Performance
- The issuance of senior secured notes and the repurchase of convertible notes could impact Wayfair’s capital structure and future interest expenses.
- The amended credit agreement provides Wayfair with continued access to a revolving credit facility for working capital and general corporate purposes.