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Zillow Group Plans $1 Billion Stock and Debt Offering

By Rich Smith – May 12, 2020 at 12:48PM

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Plan will raise cash to roll over debt.

Online home valuation resource Zillow Group (Z -2.93%) (ZG -3.27%) plans to boost its liquidity even further. In twin SEC filings Tuesday, Zillow announced plans to issue:  

  • $500 million worth of "convertible senior notes" due 2025, and
  • $500 million worth of Class C common stock (that's the one that trades under ticker symbol "Z").  
Pay off debt scrawled on a notepad

Image source: Getty Images.

At Zillow's current stock price of just about $52 per share, the company will issue about 9.6 million new Zillow C-shares. In an accompanying press release, Zillow announced that it "intends to use the net proceeds from the Shares Offering and the Notes Offering to repurchase a portion of its outstanding 2.00% convertible senior notes due 2021" (thus rolling over old debt), but also, potentially, for "acquisitions of, or investments in, other businesses, products or technologies" (i.e. to grow the business).

Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Zillow Group (A shares) and Zillow Group (C shares). The Motley Fool has a disclosure policy.

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Stocks Mentioned

Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
ZG
$29.54 (-3.27%) $-1.00
Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
Z
$29.51 (-2.93%) $0.89

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